Grant Thorton profit dips as cold winter continues….

Grant Thornton has become the first big accounting firm to report a fall in profits in 2008, blaming the economic downturn and the cost of its merger with Robson Rhodes.

The UK’s fifth biggest firm by fee income said pretax profit fell 5% to £72m for the financial year to 30 June 2008, although fee income jumped 25% to £394.1m, helped by the first contribution from Robson Rhodes after the rival firms merged in July 2007.

The profit fall is the latest evidence that the accountancy profession faces a tough 2009 as the UK economy slides into recession. Accounting firms including Grant Thornton, Deloitte and PKF, have announced plans to cut hundreds of jobs in expectation of slower revenue growth this year

Grant Thornton’s audit and assurance practice grew 44%, corporate recovery by 19%, tax services by 18% and corporate finance by 12%.