National chairman`s message

BDO Kendalls - Moving up a gear This year has been one of unprecedented change for the firm. As the fifth largest professional services firm in the world, many opportunities have opened up to us as a result of these changes.

With 130 partners and directors, over 1000 staff and turnover of around $180 million, as well as a global network of over 626 offices in 110 countries employing 31,500 people, we have created a firm with all the flexible characteristics of a local firm, together with the specific expertise, worldwide network and strength of the large scale global players.

The firm is of a size and scope that puts it into its own space, neither Big 4 or mid-tier and fills a service gap in the market by providing a "Distinctively different' option for those seeking corporate and business advisory services.

Our strategy

Our strategy is designed to achieve strong and sustained growth in our scale and capabilties, but it does not aim to make BDO a Big Fifth. Far from it, we want to give our clients and our people an alternative that is unlike other options - an alternative that is distinctively different. Our new advertising campaign "BDO Kendalls - Moving up a gear"- which launched in the press on 2 April 2007 reflects this statement.

Future outlook

Our strategy combined with our positioning in the market will provide sustained improvement in our financial performance which means we can continue to invest in quality people, capabilities and infrastructure. However, we are not complacent as we know we have much further to go. We have only just scratched the surface of the opportunities available to us.

The mood and confidence inside the firm as a result of our refreshed attitude, has encouraged us to believe that we can continue growing in both scale and market share, by offering a high quality service that is clearly - distinctively different.

Russell Heywood-Smith
National Chairman