EY finally clears debt from abandoned consulting split
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EY’s failed attempt to spin off its consulting arm, known as Project Everest, left the firm with a hefty debt that took longer than expected to clear, according to its latest yearly account.
Despite aiming to repay the $700 million (c. £575m) credit facility by July 2024, the Big Four firm still owed $270m (c. £220m) at the end of its financial year in June. The final repayment was made in October, Financial Times reports.
Last year, EY had said “costs incurred during Project Everest will be almost entirely paid down by July 1 2024”.
The abandoned project, which would have separated EY’s audit and consulting businesses, cost the firm approximately $600m (c. £490m) in planning expenses. This contributed to a significant increase in EY’s interest payments, which more than doubled to $74m (c. £60m).
EY’s global revenue grew by 3.9% to $51.2m, with audit and tax services compensating for stagnant growth in consulting.
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