Contents:

Executive Summary 1. Market Definition REPORT COVERAGE MARKET SECTORS Management Consultancy Audit and Accounting Taxation and Legal Services Corporate Finance and Business Recovery MARKET TRENDS A Buoyant Market Skills Shortages Reduction in the Number of Firms Audited Accountancy Firms are Being More Selective About Audit Clients Non-Audit Income From Non-Audit Clients is Increasing ECONOMIC TRENDS Population Table 1: UK Resident Population Estimates by Sex (000), Mid-Years 2000-2004 Gross Domestic Product Table 2: UK Gross Domestic Product at Current and Annual Prices (£m), 2000-2004 Inflation Table 3: UK Rate of Inflation (%), 2000-2004 Unemployment Table 4: Actual Number of Unemployed Persons in the UK (million), 2000-2004 MARKET POSITION The UK Overseas 2. Market Size INTRODUCTION THE TOTAL MARKET Table 5: The Total UK Market for Accountancy and Related Services by Sector by Value† (£m), 2000-2004 Figure 1: The Total UK Market for Accountancy and Related Services by Sector by Value (£m), 2000-2004 Table 6: The Major Market Shares in the UK Market for Accountancy and Related Services by Size of Firm (%), 2004 BY MARKET SECTOR Management Consultancy Table 7: The UK Management Consultancy Sector by Value† (£m), 2000-2004 Audit and Accounting Table 8: The UK Audit and Accounting Sector by Value† (£m), 2000-2004 Taxation and Legal Services Table 9: The UK Taxation and Legal Services Sector by Value† (£m), 2000-2004 Corporate Finance and Business Recovery Table 10: The UK Corporate Finance and Business Recovery Sector by Value† (£m), 2000-2004 3. Industry Background INTRODUCTION RECENT HISTORY NUMBER OF COMPANIES Table 11: UK VAT-Based Enterprises Engaged in Accountancy† by Turnover Sizeband (number and %), 2004 EMPLOYMENT Table 12: UK VAT-Based Enterprises Engaged in Accountancy† by Employment Sizeband (number and %), 2004 Table 13: Number of Members of The Institute of Chartered Accountants in England and Wales by Occupation, January 2005 REGIONAL VARIATIONS IN THE MARKETPLACE DISTRIBUTION HOW ROBUST IS THE MARKET? LEGISLATION KEY TRADE ASSOCIATIONS Association of Chartered Certified Accountants Chartered Institute of Management Accountants The Chartered Institute of Public Finance and Accountancy The Institute of Chartered Accountants in England and Wales 4. Competitor Analysis INTRODUCTION Table 14: The `Big Four' Leading Accountancy Practices by UK Fee Income (£m), 2004/2005 THE MID-TIER FIRMS Table 15: The Leading 46 Second-Tier UK Accountancy Practices by Fee Income (£m), 2004/2005 MARKET LEADERS PricewaterhouseCoopers LLP Company Structure Current and Future Developments Financial Results Deloitte & Touche LLP Company Structure Current and Future Developments Financial Results KPMG LLP Company Structure Current and Future Developments Financial Results Ernst & Young LLP Company Structure Current and Future Developments Financial Results Grant Thornton UK LLP Company Structure Current and Future Developments Financial Results BDO Stoy Hayward LLP Company Structure Current and Future Developments Financial Results Baker Tilly Company Structure Current and Future Developments Financial Results Smith & Williamson Group Company Structure Current and Future Developments Financial Results PKF LLP Company Structure Current and Future Developments Financial Results Tenon Group PLC Company Structure Current and Future Developments Financial Results OUTSIDE SUPPLIERS MARKETING ACTIVITY 5. Strengths, Weaknesses, Opportunities and Threats STRENGTHS WEAKNESSES OPPORTUNITIES THREATS 6. Buying Behaviour CUSTOMER PROFILE Selection Criteria CLIENT EXPECTATIONS 7. Current Issues AUDITOR LIABILITY SARBANES-OXLEY INTERNATIONAL FINANCIAL REPORTING STANDARDS TOO MANY STANDARDS? THE FRC and THE FREEDOM OF INFORMATION ACT 8. The Global Market FEE INCOME Table 16: The Global Top Ten Accountancy Firms Ranked by Fee Income ($bn), 2004 9. Forecasts ECONOMIC OUTLOOK Table 17: UK Economic Forecasts by Population, Gross Domestic Product, Inflation and Unemployment (000, % and million), 2005-2009 FORECASTS 2005 TO 2009 Table 18: The Forecast UK Market for Accountancy and Related Services by Sector by Value† (£m), 2005-2009 Figure 2: The Forecast UK Market for Accountancy and Related Services by Sector by Value (£m), 2005-2009 MARKET GROWTH Figure 3: Growth in the UK Market for Accountancy and Related Services by Value (£m), 2000-2009 FUTURE TRENDS More Regulations on the Horizon? EU Proposals The Future for Multi-Disciplinary Firms 10. Consumer Confidence METHODOLOGY THE WILLINGNESS TO BORROW Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant May 2003 Prices (£ and £bn), May 2003, November 2004, February 2005 and May 2005 Consumers Willing to Borrow Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), May 2003, November 2004, February 2005 and May 2005 THE WILLINGNESS TO SPEND FROM SAVINGS Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant May 2003 Prices (£ and £bn), May 2003, November 2004, February 2005 and May 2005 Table D: The Average Amounts Adults Are Confident Spending To Purchase Expensive Items (£ and %), May 2003, November 2004, February 2005 and May 2005 11. Further Sources Associations Publications General Sources Government Publications Bonnier Information Sources

Companies Mentioned

- PricewaterhouseCoopers LLP - Deloitte & Touche LLP - KPMG LLP - Ernst & Young LLP - Grant Thornton UK LLP - BDO Stoy Hayward LLP - Baker Tilly - Smith & Williamson Group - PKF LLP - Tenon Group PLC