Markets

MHA operates in a market that is both large and growing. The UK audit and accounting sector is forecast to generate c. £8.8bn in FY25, having grown at around 5% per year since FY20.

This consistent growth reflects the fundamental role that audit and assurance play in the economy and the increasing complexity of financial reporting and regulation. Within this environment, MHA’s breadth of services, geographic reach and reputation for quality provide a strong platform to capture opportunities as the market develops in the UK and overseas.

Landscape

The UK market is dominated by the Big Four, who account for just under 60% of revenues, but their share is gradually reducing. The balance is spread between a small number of mid-tier challenger firms, including MHA, and a much larger number of smaller practices. This creates opportunities for firms such as ours: non-Big-Four firms increased their share of FTSE 350 audits to 13% in 2023, up from 11% in 2022. Clients are increasingly looking for advisers outside the very largest providers, valuing the combination of quality, independence and responsiveness they can offer.

Audit fees & demand

Audit fees across the UK market are rising as regulatory standards and complexity increase. Public Interest Entity audit fees rose 27% to £1.4bn in 2023, reflecting the depth of work required and the scarcity of skilled resource. For MHA, this environment has led to significant growth in both fees and client numbers. Between FY22 and FY25, the number of PIE audit reports issued by MHA (more than doubled), while average fees per client increased strongly. This demonstrates both the overall uplift in market pricing, reflecting the value of the services provided, and MHA’s ability to compete across all levels of the market.

Key demand drivers

Regulatory change and quality focus Heightened regulatory scrutiny by the FRC, and planned reforms under the Audit, Reporting and Governance Authority, have raised audit quality expectations. Rules such as mandatory audit firm rotation and restrictions on non-audit services for large public companies improve independence and gradually address market concentration. They also have practical effects. Some firms have exited segments of the audit market due to high compliance costs, which creates openings for others that remain. Investors and boards now expect more independent, higher quality audits, which supports higher pricing for specialist providers. Challenger firms – MHA included – have been winning an increasing number of large public company audits.
Succession and consolidation In a highly fragmented market, many smaller and mid-sized practices face succession issues as founder partners retire. This demographic shift is accelerating consolidation across the UK. A rising share of firms report M&A as they seek scale, broader specialisms and the ability to handle more complex client needs. A December 2024 industry report indicated that about a third of the top 100 accountancy firms undertook M&A activity in the latest period. With a proven blueprint for M&A, MHA is well positioned in this environment. We do not acquire for scale alone, selectively pursuing targets that meet strict criteria on strategic fit, earnings quality and cultural alignment. This, combined with our disciplined integration track record, enhances geographic reach, deepens sector expertise and adds specialist services – creating a clear growth path alongside organic expansion in the UK and overseas.
Talent and skill shortages Like many professional services, UK accountancy faces a tight labour market. The combination of Brexit, pandemic-related churn and an ageing partner demographic has created widespread skills shortages, especially in specialist audit and advisory roles. Scarcity constrains supply and allows established firms to differentiate on quality. In MHA’s case, continued investment in staff development, training and technology – including data-enabled audit tools – helps the firm meet client expectations and capitalise on market growth opportunities.
Client demand for multi-service advice Businesses face more complex tax, reporting and regulatory requirements than ever before. Many prefer a single trusted adviser able to coordinate audit assurance, tax planning and specialist consulting such as ESG reporting or international structuring. Mid-sized firms with integrated service lines such as MHA are well placed to meet this preference. Depth in key sectors, coupled with access to international resource where needed, allows us to tailor solutions efficiently.

Outlook

The UK audit and accounting market combines size, resilience and structural change. Growth in advisory and specialist services, rising audit quality expectations and a gradual broadening of the PIE market beyond the Big Four all point to sustained opportunity. At the same time, consolidation continues to reshape the industry, rewarding those with the ability to target wisely and integrate effectively.

MHA is well positioned against all of these trends. Our scale, broad service offering, investment in people and technology, international reach and proven integration record mean we are able to capture opportunities created by increased regulation, market consolidation, technology advances and client demand. We believe these dynamics will support continued growth for MHA and reinforce our role as a trusted adviser to businesses in the UK and overseas long into the future.