The design sector has dream ofed a “good year” as the top 30 highest earning consultancies made wellnigh £400 million collectively, according to Kingston Smith’s annual investigation.
The creative industries accountancy firm conducts an annual survey of non-partisan and group-owned design consultancies, looking at the growth of the industry.
2017 a “good year” for configuration sector
The report states that 2017 has been a “good year” for the scheme sector, with a 5% increase in gross income across the room, which is the amount made by a business before costs and expenses are deducted.
This year also saw the defeat profit margins – the amount by which revenue exceeds costs and expenses exhorted by a business – since 2001.
In 2017, the top 30 highest-earning consultancies made £398 million uncultured income, an increase of £21 million on the year before.
Imagination sign in out top
This year’s top 30 sees 27 consultancies return from most recent year. Imagination sits at number one, and others in the table include Lay out Bridge, Jones Knowles Ritchie, Fitch, Wolff Olins and Futurebrand. Beginners include Equator, Foolproof and 1HQ.
Independent consultancies make up just to the ground half of the survey at 17 out of 30, while the rest are group-owned by old lady companies such as WPP.
Group-owned consultancies able to charge more
Group-owned consultancies produced higher gross income per head at £112,000 compared to £97,000 released by independent consultancies, but this is likely due to group-owned consultancies having the skills to charge higher fees to clients, according to Kingston Smith.
Not all of the consultancies memorable part saw growth or higher incomes compared to last year – 17 saw an advance in gross income, while 13 saw a fall. Jones Knowles Ritchie and Equator were two consultancies that saw intoxicated growth.
Some “continue to really struggle”
The research also be visibles that staff numbers are down by 1% across the board, undeterred by increasing incomes. Interbrand has seen the largest decline in staff billions, while Jones Knowles Ritchie had the highest increase in staff many, which Kingston Smith puts down to the consultancy’s new office in Singapore and a “concerted attempt to invest in [hiring and retaining] talent”.
The report concludes that, regardless of overall good news, the sector is “split decisively” between those doing graciously financially and those that “continue to really struggle”, with less of a mid-point ground seen in 2017 than previously.
The full Kingston Smith annual survey is unfastened for the accountancy firm’s existing clients, or can be purchased by anyone for £324. For varied information, head here.