Revenue and turnover fall as accountancy giant invests £44m in ‘hybrid working’

Revenue and profits have dropped at accountancy giant KPMG after what it has called “an extraodinary year”.

For the year to September 30 2020, KPMG saw turnover drop by 4% to £2.3bn, while profits dipped by 6% to £288m. The firm put these decreases down to the pandemic.

Meanwhile, average partner distribution decreased by 11%, from £640,000 to £572,000.

Despite the impact of the pandemic, KPMG said it did not have to furlough any of its staff nor access any Government Covid loans.

KPMG says it is investing £44m this year in introducing a hybrid way of working whereby its staff will work part of the week from home and part of the week from its own or client offices.

To deliver this, KPMG is undertaking office redesigns across the country, repurposing them to focus on facilitating collaboration.

This redesign will challenge the traditional office layout, with space being repurposed to prioritise meetings, presentations and informal convening between colleagues, clients and the firm’s wider networks. Work on the offices will begin in the spring and take place over the course of the year.

Karl Edge, Midlands regional chair at KPMG, said: “The unprecedented events in 2020 proved challenging for everyone and notably for the Midlands, following the growth trajectory and investment our region has seen in recent years. At KPMG, our focus is on our people and their wellbeing, helping our clients as they seek to build resilience, grow and focus on recovery, and of course on supporting our communities.

“We have an incredibly talented team of 1,600 people working across the Midlands, and our commitment to the region is demonstrated by our continued investment in our talent. Over the last year, we promoted 71 colleagues in the Midlands, which included the appointment of three new partners and five directors, and 80 new graduates & apprentices joined our regional practice.

“Looking ahead, we all have a part to play in helping our local economy return to sustainable growth and I’m confident that by working together and making the most of the opportunities and investment, we can bounce back with real vigour. As the region focuses on resilience and recovery, I have no doubt that we’re well placed to assist our clients to help them achieve their ambitions and to support our communities.”