PwC reports 5% rise in revenues
PwC UK, the professional services firm, has reported annual revenues of £3.76bn, up 5% from £3.60bn last year.
Publishing its annual results to June 30 2018, the firm – which has offices in Leeds and Hull but this year closed its Sheffield office and relocated staff to Leeds – said it continued to invest in people and technology across the UK to support its clients.
Nationally, the firm’s profit was £935m and the average distributable profit per partner before tax was £712,000. The effective UK tax rate for partners was 48%. Its assurance revenues increased by 3%, consulting revenues were up by 1%, deals grew by 10%, and the tax practice experienced growth of 7%.
Kevin Ellis, PwC UK Chairman and Senior Partner, said: “Despite uncertainty over Brexit, all four of our business divisions grew this year, with high demand for technology-related services, including cyber, data analytics and GDPR. Twenty-nine percent of the firm’s revenues came from inbound – organisations headquartered outside the UK – highlighting the importance of the UK as a global business hub.
“Momentum in our business is good, driven by a strong deals market and demand for technology-driven business expertise, as we see organisations turn to us to help them transform their business models, many in response to digital disruption.
He added: “During the year there has been significant scrutiny of our profession and the audit market in particular, with recent commentary highlighting concerns over competition, choice and audit quality. We are committed to helping regulators find practical remedies to increase choice and are clear that audit quality must be the top priority.
“This year we settled two Financial Reporting Council investigations (BHS and Tenon) where our work fell below the standards expected of us and that we demand of ourselves. Our goal is always to deliver work of the highest calibre. When we get things wrong we put our hands up, learn the necessary lessons and improve our processes. Audit remains a fundamental part of the firm and the commitment to continuously improve audit quality is at the forefront of our strategy.”
PwC launched a fully funded tech and data degree apprenticeships at five UK universities – Birmingham, Edinburgh, Leeds, Queens in Belfast, and St Andrews – giving over 100 students a year a traditional university experience while receiving paid on-the-job training.
Ian Morrison, PwC’s Yorkshire & North East Regional Leader added: “Investing in our regional footprint is a priority for the firm and I’m delighted that the Leeds office was one five regional centres to launch the tech and data degree apprenticeships this year which we will run in conjunction with Leeds University. On 24th September 36 apprenticeships will join the firm as part of the fully funded degree course, this is in addition to 58 graduates who have already joined the wider practice this summer.
“Ensuring that we have the right skills, increased levels of specialisms and technologies to assist with the challenges facing our clients in the future is essential. Whilst creating new and more flexible ways of working bringing together our people and technology to deliver a wider range of integrated services in a way that best suits our clients.”
