KPMG hails solid growth following year of investment
KPMG UK, which has offices in Birmingham, Leicester and Nottingham, has announced that revenues increased by 3% from £2.34bn to £2.40bn for the financial year ended 30 September 2019.
A busy M&A and restructuring market fuelled the firm’s deal advisory practice, which grew by 3% net sales while KPMG’s audit practice posted growth of 10%. Continued geopolitical uncertainty and widespread regulatory change saw KPMG’s tax, pensions and legal practice grow by 3%.
This follows a year of investment in core areas of the firm, including £45m from in-year earnings as part of a planned £200m investment in audit by the end of 2020.
Average partner distribution for FY19 fell to £640,000 from £690,000 in FY18, a 7% decrease, while the chairman’s pay was £1.9m.
Karl Edge, Midlands regional chairman, said: “Our business across the Midlands grew in line with the wider UK firm, driven locally by our deals and tax practices.
“I’m extremely proud of the talented people we have in the Midlands for what we’ve achieved and the work we’ve delivered for our clients. I’m really pleased that we’ve been able to grow our regional business to a 1600 strong practice across the East and West Midlands. I believe that the Midlands still has ongoing momentum, even with the changes the economy is experiencing, and I’m looking forward to seeing the region flourish with more investment, development and opportunities.
“Our clients, like most businesses and organisations, are currently operating in a tumultuous geopolitical environment, combined with uncertainty and Brexit headwinds. We’ve been working closely with a number of businesses across the region to help them navigate the challenges that this brings and to provide tailored solutions to meet their needs. We’ve also invested both nationally and locally in our people and practices to adapt and respond to the regulatory changes the professional services sector currently faces.
“Looking ahead the Midlands remains a key growth area of the UK economy, with various party manifestos pledging much needed investment in the East Midlands, Coventry named as the UK’s City of Culture in 2021 and the Commonwealth Games in 2022 being hosted in Birmingham. All are evidence of the region’s growing attractiveness to visitors, residents and businesses alike.
“Next year will be KPMG’s 150th anniversary which will give us the opportunity to celebrate our proud heritage here in the Midlands. As we go into the New Year, we are committed to contributing to the success of the Midlands and supporting the significant opportunities and challenges that it will bring.”
Bill Michael, chairman and senior partner at KPMG in the UK, said: “We are creating a business that stands ready for the fundamental changes we expect to see over the next few years, both from the reforms necessary to rebuild trust in our sector and as we pivot our business to meet the changing nature of the work we are doing for our clients.”
“We have undertaken a comprehensive overhaul of our audit practice, reappraising every aspect of what it does and how it interacts with the rest of the business. Central to that has been investing heavily in our capability and capacity to deliver the audit of the future.”
“Our advisory business is increasingly winning long-term, multi-year contracts that deal directly with the most challenging and complex areas of our client’s businesses and require significant up-front investment on our part. We are winning these mandates by combining content, expertise and understanding from right across our firm. Our firm now has a strong base from which to capitalise on these opportunities.”
