Grant Thornton International issues member firm financial results 2006

Press release – December 2006

• member firm financial performance up by 12% in US$ 
• fourth consecutive year of double digit growth 
• network also sees investment for the future.
  
  Grant Thornton International today (12 December 2006) announced financial results for member firms worldwide to the year ended 30 September 2006. For the fourth consecutive year, Grant Thornton International member firms achieved revenue growth with an average increase of 12 per cent (when stated in US$). Growth in many member firms significantly exceeded this level in local currencies, but the value of the dollar has depressed the figures when converted into US$.
  
  For the fourth consecutive year, the biggest overall growth in US$ terms was in the United States, where Grant Thornton LLP grew revenues by $158,369m (19%) to revenues of $987,006m. Other parts of the network which performed well were in emerging markets such as Asia Pacific (up 21%), Central and Eastern Europe (up 19%), Brazil (up 78%), India (up 61%) and Russia (up 50%) Member firm total personnel and the number of partners worldwide grew by 11 per cent and 6 per cent respectively, reflecting significant investment made by member firms during the year in order to drive client service.
  
  

  	2006	2005	2004	2003	2002
  Total member firm revenue(*)	US$2.8bn (+12%)	US$2.5bn (+17%)	US$2.1bn (+20%)	US$1.7bn (+20%)	US$1.5bn
  Core revenue (*)	US$2.4bn (+13%)	US$2.4bn (+18%)	US$2.0bn (+20%)	US$1.7bn (+23%)	US$1.4bn
  Number of member firms	93	92	91	92	85
  Number of member firm offices (*)	489 (+1%)	484 (-4%)	504 (+1%)	498 (+3%)	483
  Member firm staff(*)	24,512 (+11%)	22,066 (+8%)	20, 486 (+2%)	20,180 (+5%)	19, 170
  Member firm partners(*)	2,207 (+6%)	2,090 (+3%)	2,026 (+2%)	1,983 (+4%)	1,910
  Number of correspondent firms(*) (income excluded)	18	18	21	20	25
  Year end	30 Sept 2006	30 Sept 2005	30 Sept 2004	30 Sept 2003	30 Sept 2002

  (* see definitions below in Background and methodology)
  
  Said David McDonnell, chief executive officer, Grant Thornton International: "2006 was another strong year for member firms right across the world. Firms grew particularly well in emerging markets - in South East Asia, the BRIC countries (Brazil, Russia, India, China) and Central and Eastern Europe especially. As these economies emerge it is critical for member firms to capitalise on the opportunities - and I am very pleased to see that reflected so strongly in these financial results.
  
  "The other characteristic of the year has been the investment - in people and infrastructure at the member firm level. The member firms continue, as part of Grant Thornton International's global strategy, to deliver the highest possible client service standards."
  
  From 1 January 2007 McDonnell has appointed a new global leadership board and restructured the management of Grant Thornton International. The organisation will focus on four global market segments:

 

• Privately Held Business Services - led by Alex MacBeath
• Tax Services - led by Ian Evans 
• Assurance Services - led by Ken Sharp 
• Specialist Services - led by Scott Barnes
  
  A new chief operating officer (Mike Starr), head of network development (Gabriel Azedo) and head of marketing (Jon Geldart) have also been appointed.
  
  The top ten member firms in the network by revenues for the twelve months ended September 30, 2006 were:
  
  

  	Member firm	2006 $ revenues (in'000s)	% growth on previous year
  1	US	US$987,006	+19%
  2	UK	US$491,674	+4%
  3	Canada	US$351,160	+12%
  4	Germany	US$148,338	+6%
  5	France	US$108,048	+7%
  6	Sweden	US$82,978	+5%
  7	Australia	US$69,179	+7%
  8	Netherlands	US$49,500	-7%
  9	Japan	US$39,943	+53%
  10	South Africa	US$32,914	+2%

  
  
  The top ten growth rate of member firms in the network for the twelve months ended September 2006 were:
  
  

  	Member firm	% growth
  1	Vietnam	+117%
  2	Ukraine	+93%
  3	Brazil	+78%
  4	Jordan	+78%
  5	Gibraltar	+75%
  6	Macedonia	+64%
  7	India	+61%
  8	Japan	+53%
  9	Kenya	+51%
  10	Russia	+50%

  
  
  Ends

Background & methodology

Revenue

revenue from correspondent firms has been excluded to give a more accurate picture of the real performance of the network.

all member firms have reported to a single year-end date (30 September) for consistency and comparability

member firms reported revenues net of VAT (Value Added Tax) or GST (General Sales Tax)

revenue is reported as fee income plus rechargeable expenses.

Core activities
The core activities of the members of the Grant Thornton International network are defined as follows:

assurance

privately held business services

specialist advisory services

· business risk

· corporate finance

· forensic and investigation

· public finance

· recovery and reorganization

tax compliance & consultancy

Firms
The Grant Thornton International network consists of member firms and correspondent firms. The results reported in this financial report are for member firms only as Grant Thornton International believes this reflects more clearly the breadth and strength of international networks. Correspondent firms can appear in the networks of more than one international accounting organisation and therefore there is danger of 'double-counting' if their revenues are included by more than one network.

Member firm offices
An office is defined as a single building or collection of buildings in a separate location within a city or town.

Exchange rate
Financial results reported by independent member firms were translated into US dollars using the average inter-bank exchange rate over the year ended 30 September.

Member firm partners
A partner is a legal partner or director of a member firm.

Grant Thornton International
Grant Thornton International is a not-for-profit, non-practising, international umbrella membership organisation organised under the laws of the State of Illinois, United States of America. Each member firm is a separate financial and legal entity.