Forvis Mazars defies watchdog rebuke with record revenue growth
- Forvis Mazars reported UK revenues of £362.4 million for 2024, marking an 8.3% increase from the previous year.
- The audit division experienced a remarkable growth of 15.1%, largely attributed to new client acquisitions.
- Despite its growth, the Financial Reporting Council raised concerns about the quality of the firm's audit work.
In the UK, Forvis Mazars, one of the largest accountancy firms, reported significant financial growth despite facing scrutiny from an industry watchdog. For the 12 months that ended in August 2024, the company's revenues increased by 8.3% to £362.4 million, up from £334.6 million in 2023. This marks the fifteenth consecutive year of revenue growth for the firm, a notable achievement in a competitive sector. The growth was primarily fueled by a strong performance in its audit division, which saw revenues climb by 15.1% to £175.4 million. This increase can be attributed to the firm winning new clients, such as Babcock and securing its first FTSE 100 audit. Despite the positive financial results, the Financial Reporting Council (FRC), the UK’s audit watchdog, previously critiqued Forvis Mazars for the quality of its audit work, describing it as “unacceptable.” The FRC pointed out the need for significant improvements in the audit processes of the firm, which raises concerns about the sustainability of their current growth trajectory. The juxtaposition of revenue growth against regulatory scrutiny highlights the challenges faced by accountancy firms and the high stakes involved in maintaining reputation and compliance in the industry. James Gilbey, the UK chief executive of Forvis Mazars, commented that the firm's recent successes were largely the result of new client acquisitions, illustrating the firm’s proactive approach to expanding its business portfolio. By winning clients in crucial sectors like defense, the firm has not only broadened its client base but has also enhanced its market credibility. Looking ahead, the firm’s ability to balance growth while addressing the concerns raised by the FRC will be a determining factor in its future success. Forvis Mazars now faces the dual challenge of maintaining its revenue momentum while simultaneously improving the quality of its audit services, a crucial component of its reputation and long-term viability in the competitive accounting landscape.