Investment dents profits at KPMG
INVESTMENT in people, new ventures and new offices has seen profits dip 9% at Big Four accountant and business advisory firm KPMG.
The firm said UK revenues in the year to the end of September had risen 5% to £1.9bn. Growth was seen in advisory (+5% to £324m) and audit (+2% to £181m), while tax was down 8% to £129m during the year.
Average partner pay was broadly flat, increasing marginally by 0.3% from £713,000 to £715,000.
Simon Collins, UK Chairman of KPMG, said: “We have invested substantially across our business: in people training and development, in an improved staff benefits scheme, in new technology and in new offices in Manchester and London.
“A key component of our investment programme is our five ‘strategic growth initiatives’, which include Digital & Analytics and Enterprise for SME businesses.
“These investments are designed to deliver sustainable future growth for our firm.”
KPMG in the UK has 588 partners and employs 11,300 staff (up 5% on 2013. The firm said it had increased its bonus pool by 9.6% to £80m.
Its Manchester team is relocating over the holiday period to its flagship new office at St Peter’s Square.
Jon Holt, senior partner, KPMG in Manchester, said: “2014 has been another solid year for KPMG across the North. Revenues across the region finished the year at £200m, up around 3% from the previous year, and in the Manchester office, we’ve had a number of significant wins including the audits of Arrow Global, the Audit Commission and University Hospitals, and a transformational win for our management consulting team at Sellafield.”
Looking ahead, Holt added: “2015 promises to be a landmark year, both for KPMG and for Manchester and the wider North West.
“We kick-start the year on 5 January by opening the doors to our fantastic new office in One St Peter’s Square. We’re incredibly proud of the space we have created and can’t wait for everybody to see our new home.
“Additionally, our new Enterprise team headed by Jonathan Boyers has already had a flying start since its launch eight weeks ago with some fantastic wins, so we’re looking forward to building on this momentum and truly disrupting the market for services to privately-owned companies, large and small, across the region.”
