Core Insights - The Financial Reporting Council (FRC) has published its 23rd Key Facts and Trends (KFAT) report, analyzing the UK accountancy and audit sector, with contributions from 31 firms auditing Public Interest Entities (PIEs) [1] Membership Trends - The accountancy profession is experiencing growth, with UK and global membership numbers reaching 408,000 and over 623,000 respectively, despite a slight decline in student enrolment [2][3] - Membership growth rates are 0.8% in the UK and 1.1% globally from 2023 to 2024, while student numbers have decreased by 0.3% in the UK and 0.1% globally [3] Audit Market Dynamics - The audit market is consolidating, with a reduction in registered audit firms, yet an increase in FTSE 350 audits conducted by firms outside the Big Four [2] - The number of statutory audit firms has declined by 24.9% over the past five years [4] Student Achievement and Qualifications - Despite a decline in student numbers, there has been a significant 12.3% increase in students achieving membership status worldwide [3] - The number of individuals obtaining the Audit Qualification in 2024 has slightly decreased to 1,800 [3] Revenue Insights - The ACCA reported the highest income of £258.8 million in 2024, while CIMA and ICAEW showed the most substantial income growth [4] Regulatory Developments - The FRC has initiated a public consultation on proposed improvements to its Audit Enforcement Procedure, seeking stakeholder feedback until January 9, 2026 [5]

Baker Tilly Germany could bring in a private equity investor and become the latest major accountancy firm to strike a deal with a buyout shop https://t.co/2dc9KUJJ5b ...

Group 1 - The UK government is collaborating with Wall Street to enhance London's status as a global listing hub, with a focus on attracting initial public offerings (IPOs) [1][2] - A private roundtable will be co-hosted by Chancellor Rachel Reeves and Goldman Sachs' Anthony Gutman, involving executives from technology and growth sectors to promote London as a viable IPO destination [1][2] - The meeting aims to address the UK's attractiveness for listings and highlight recent reforms to improve capital market competitiveness [2] Group 2 - London's IPO market has significantly declined, reaching a 30-year low in August, with the city now ranked 23rd globally for IPO fundraising, even behind Mexico [3] - Proceeds from IPOs in London fell by 69% to $248 million, marking the lowest level in 35 years [3] - The largest IPO in London this year raised £98 million ($132 million), with no involvement from major Wall Street banks, indicating a reliance on smaller local firms [4] Group 3 - The third-quarter IPO volume in London was just $42 million, down 85% compared to the same period last year, reflecting a stark decline in market activity [4] - Competitors view Goldman Sachs' participation in the Treasury-led meeting as unusual, providing the bank with a unique opportunity to pitch to potential listing companies [5] - The partnership underscores concerns that London may permanently lose its competitive edge to New York, where the IPO market is experiencing a resurgence, particularly from crypto and AI firms [5] Group 4 - The disparity between the UK and US IPO markets is growing, with London raising only £160 million ($215 million) across five deals in the first half of 2025, the weakest performance since 1995 [6] - In contrast, US exchanges raised $28.3 billion across 156 listings, primarily driven by next-generation technology and digital asset firms [6]

Core Insights - The accountancy sector is facing a significant talent shortage that is expected to hinder its growth, with 94% of surveyed leaders indicating that recruitment challenges will greatly impact expansion capabilities [1][3] Recruitment Challenges - Nearly 40% of accountancy leaders believe that recruitment issues will have a "significant" impact on their firms [2] - 74% of firms are currently unable to take on additional clients or increase billable hours due to a lack of skilled professionals [2] - A demographic shift is noted, with 30% of firms reporting more professionals nearing retirement than those entering the field [2] Perception of Talent Shortage - Compared to three years ago, 48% of respondents feel that the talent shortage has worsened either moderately or significantly [3] Strategic Responses - In response to the talent crisis, 61% of firms have turned to outsourcing work overseas, while 33% are engaging in offshoring practices [4] - Firms are also coping with rising salary pressures (44%), investing in technological advancements (38%), and focusing on staff development (42%) [5] Industry Adaptation - The industry is witnessing a shift in operational models, with leaders needing to rethink service delivery and resource management [6] - Those who adapt quickly to these changes are expected to thrive in the current environment [6]

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The Global Talent Trends 2025 survey includes over 10,000 respondents from 175 countries, focusing on accountancy and finance professionals [3] - Key work metrics tracked include retention, mental health, social mobility, hybrid working, and technology adaptation [5] Demographics - The gender distribution among respondents shows 53% male and 43% female, with 4% preferring not to disclose [4] - The largest sector represented is large corporate sector firms at 51%, followed by financial services at 22% and small to medium-sized enterprises (SMEs) at 15% [4] - The generational breakdown indicates that 42% of respondents are Gen Z (under 28), 36% are Gen Y (29-44), 18% are Gen X (45-60), and 3% are Baby Boomers (61+) [4] Key Work Metrics - In 2023, 61% of respondents expressed a desire to move externally in their next role, which is projected to decrease to 52% by 2025 [6] - Mental health concerns due to work pressures are reported by 55% of respondents in 2023, with a slight improvement expected to 58% in 2024 [6] - Social mobility barriers are acknowledged by 49% of respondents in 2023, with a decrease to 40% anticipated by 2025 [6] - The prevalence of hybrid working is reported at 35% in 2023, expected to rise to 40% by 2025 [6] - A significant 42% of respondents feel overwhelmed by the pace of technology change in 2023, with a slight decrease to 36% projected for 2025 [6]