Profits soar to £455m at KPMG
AVERAGE partner pay at accountancy group KPMG leapt 23% to £713,000 last year on the back of surging profits.
In the 12 months to the end of September overall revenues were static at £1.8bn but pre-tax profits grew 27% to £455m mainly due to cost-cutting that has seen the group get “a sustainable grip on the bottom line”, according to chairman Simon Collins.
Mr Collins took home annual pay of £2.42m, a figure recommended by the remuneration committee and approved by a vote of partners. A bonus pool for employees has grown 20% to £73m.
The largest increase in profits came from the firm’s audit team, where earnings jumped 16% to £178m. Tax slipped 0.7% to £140m while advisory services increased 16% to £308m. The firm has come under scrutiny in recent months as auditor of the Co-op Bank which requires a £1.5bn bail out.
Earlier this month partners told a Treasury Select Committee that they saw nothing that raised alarm bells ahead of the bank’s financial crisis, and they did not see due diligence data ahead of the merger with the Britannia building society which has been blamed for saddling the bank with bad property debts.
KPMG said it would put part of this year’s profit towards £450m of investment in the quality and breadth of its services over the next three years.
Jon Holt, senior partner in Manchester, said: “2013 has been a strong year for KPMG across the North West, with our financial results mirroring those of the wider UK firm. While the economy finally appears to be turning a corner, our success over the course of the year is in no small part down to the expertise and commitment to delivery from our people across our offices in Manchester, Preston and Liverpool, who have responded to a challenging environment with aplomb.”
KPMG’s corporate finance team worked on 20 transactions across the North during 2013, including the sale of eight businesses across Europe by Sage, the acquisition of Giles Bakery by Warburtons and the sale of Boutinot.
The regional transaction Services team advised on 15 deals, including Manchester Airport’s £1.5bn acquisition of Stansted Airport. KPMG has nearly 11,000 staff with 855 across offices in Liverpool, Preston and Manchester. Some 700 are based in Manchester.
