The Assurance line of service registered favourable overall results and increased net fee revenue to CHF 384 million, which was 5% higher than the previous year. This enabled us to establish ourselves as a leading Swiss auditing firm and remain on our growth path. We see our future as an intelligent combination of human-based knowledge and technology-driven efficiency.
Our auditing services must be deemed worthy of attention with no ifs or buts. With net fee revenue totalling CHF 384 million for the financial year 2017/18 (previous year: CHF 367 million), we remain the clear number one in this market. We benefit from a healthy mix of companies and industries experiencing stable growth.
The largest contribution to revenue was made by auditing mandates in the trade, industry and services sector. We acquired a great many new clients and were able to complete transaction-related projects for spin-offs and IPOs. We made a quantum leap in terms of audit-related services such as system and process management, internal control systems and internal auditing, achieving impressive growth of 22% in relation to the previous year and making considerable investments. The only area in which results were below expectations was in financial services. This was mainly due to the lack of major supervisory projects, whereas a large number of such projects had been completed in the previous financial year.
Favourable market environment
The market situation in the reporting year was favourable for the trade, industry and services sectors. We were able to work on comprehensive, complex projects related to many business transactions, providing our clients with genuine added value. The market for activities that go beyond traditional auditing was also in good shape due to technological developments. The situation proved less fruitful for our clients in the financial services sector. This was particularly the case for larger stakeholders, as comprehensive regulatory programmes come to an end.
Staying on target and setting clear priorities
In the coming financial year, we will follow the same path as in previous years, but with three strategic priorities. Firstly, we will aim to acquire additional market share and be awarded contracts in major audit tender processes. Secondly, we will seek to achieve ambitious growth in other auditing services. And finally, we will endeavour to transfer our core business even further into the digital age.
Uniting humans and machines
The transformation and digitisation of auditing are among the ten major tasks we face in the coming years. The way in which we provide services is shifting from the previous person-centred model to a new approach that involves a mixture of humans and technology. This is changing our relations with our auditing clients: with the help of digital platforms, we are able to interact with our clients much more effectively, for example using Digital LSE, an integrated platform for limited statutory audits. Our clients can also benefit from our investments in digital processes and products. Tools such as the intelligent Halo Suite software for accounting data or the audit tool PCT provide valuable information about the way in which a company is controlled. They help improve the effectiveness of the control environment and make audits more efficient than when using traditional spot-check methods.
