KPMG’s Northern practice holds firm
KPMG the ‘Big Four’ accountancy group saw flat revenues in its Northern practice of £180m last year, bucking a down-ward national trend.
The firm, which has offices in, Liverpool Manchester and Preston, saw huge growth in income from restructuring – locally it led the CVA for retailers
JJB and Focus and the administration of property group Modus – but overall UK turnover was down 1.6% at £1.62bn from £1.65bn.
Nationally restructuring income soared 44.5% to £160m, while in line with the lack of big deals, corporate finance and transaction services saw income slump 21.9% to £253m.
Tax income saw a fall of 12% to £375m, while audit was up 4.7% at £486m. Overall operating profits were 1.3% below last year at £382m.
Jonathan Hurst, chairman of KPMG in the North, said the turnover achieved by the Northern practice – which also includes Leeds and Newcastle – was a “creditable result” in an “exceptionally challenging financial year.”
He said the firm had continued to innovate and paid tribute to the work done by restructuring partner Brian Green’s team with JJB Sports’ crucial CVA deal.
Income from pensions advisory services rose 40%, while there was strong growth in the public sector and financial services practices.
Looking ahead to 2010 Mr Hurst said he was cautious: “The outlook is far better than it was at this time last year; however, the bad news lies in just how shallow I think the economy’s upward curve may prove to be during 2010.
“There are just too many significant negatives for me to be as upbeat as I’d like. My best gauge is talking to my clients and their tone is, by and large, cautious.”
He believes the fists quarter of the new year will be tough with more insolvencies and unemployment rising.
