Partners receive windfall at major accountancy firm

Profits at accountancy giant KPMG have fallen despite revenues growing by 9% and its partners receiving an average annual bonus of £786,000.

Surplus at the company came in at £364m – down from £449m last year. Revenues increased to £2.95bn.

The firm has over 1,400 colleagues based in the Midlands. Last year KPMG UK promoted 83 staff across its Birmingham and Nottingham offices, with a further 156 joining the firm as graduates and apprentices.

Marc Abrams, Nottingham office senior partner, said: “Despite a tougher economic environment last year, we still recorded strong growth locally and I’m proud of the work we have delivered for our clients.

“We started unlocking the benefits of our partnership with the University of Nottingham, with the first publication of the Local Business Pulse Index which uses AI technologies to pinpoint what is influencing economic activity across the UK.”

Increased client demand for advice on tax transformation and the use of Generative AI from the firm’s tax and legal business delivered an 8% increase in net sales. KPMG’s consulting arm also recorded an increase in sales of 7%, with clients seeking advice on a range of transformation projects including digitisation. The firm’s audit practice grew 19%, driven by expanded reporting requirements.

Abrams added: “The continued recognition of our talented people through promotions and the number of graduates and apprentices joining us highlights our commitment to grow our business to support our clients with navigating the changing economic landscape.

“While the economy and geopolitical issues may still take centre stage this year, there are signs of an improving business landscape. The East Midlands is a hotbed of innovation and this year we’ll also see the first East Midlands mayoral election, which businesses will be closely following.”

The wider slowdown in the global deals market and challenging UK market conditions in the firm’s fourth quarter of financial reporting saw deal advisory sales decrease in the year by 6%.

Despite this, Abrams remained positive, saying: “Looking ahead, I’m optimistic that business confidence will start increasing in the year ahead.”