Big four firm records nine per cent rise in revenues

Accountancy firm KPMG has recorded another year of strong revenue growth, with a rise of nine per cent from £2.72bn to £2.96bn.

Increased client demand for advice on tax transformation and the use of Generative AI from the firm’s tax and legal business delivered an eight per cent increase in net sales.

KPMG’s consulting arm also recorded an increase in sales of seven per cent with clients seeking advice on a range of transformation projects including digitisation.

The firm’s audit practice grew 19 per cent, driven by expanded reporting requirements.

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 six per cent.

The firm has a strong presence in the region, with over 700 colleagues spread across two offices in the South West – Bristol and Plymouth.

Last year KPMG UK promoted 19 colleagues across the South West, and also welcomed new graduates and apprentices, reflecting the firm’s commitment to training the next generation of leaders and having a strong presence in the region.

Andy Pick (Infrastructure, Government and Healthcare Indirect Tax), Rees Batley (Infrastructure, Government and Healthcare Audit) and Nathan Chrimes (Private Enterprise Audit) became partners on 1 October 2023; and John Levis, Managing Director, was also promoted to lead the corporate finance practice across the region.

Over the past year, the South West corporate finance team advised on a wide range of deals including the sale of Amdaris, an award-winning software development and digital services specialist, to US-based Insight Enterprises Inc; the sale of Mike Burton, a specialist sports travel provider, to Destination Sports; and LDC’s investment into Idwal, a leading provider of tech-enabled inspection services for the global commercial shipping sector.

David Williams, KPMG UK’s South West Senior Partner, said: ”I am very proud of the support our teams provided to our clients  to respond to their problems against a backdrop of a challenging business landscape. They helped clients weather the economic storm and made plans to support their future growth.

“Supporting our clients with our expertise is more important than ever and that starts with the development and progression of our current colleagues through promotions, and by hiring and training the future generation.

“This is a good opportunity to reflect and take stock of the past year and being a responsible business will remain at the centre of what we do. As part of that, our colleagues will be supporting various initiatives such as our Opening Doors to Opportunities programme to help tackle social issues that impact our communities.

“Looking ahead, we’re cautiously optimistic that the market will improve, and our colleagues will continue to deliver first class service to our regional clients.”

Jon Holt, Chief Executive and Senior Partner of KPMG in the UK, said:  “Our people have worked exceptionally hard to deliver strong revenue growth against a challenging economic backdrop. Digitisation and emerging technologies are at the forefront of our clients’ minds, and we have the expertise to meet demand and help them gain a competitive edge.

“I am confident that our long-term strategy is delivering and putting the right foundations in place to transform the business for future, sustainable growth.”

Investment in retaining and attracting talent underpins KPMG UK’s three-year strategy to transform the firm for future growth.

The business reported a reduced profit before tax of £364m, following a 17 per cent increase in staff costs. This was due to the firm’s desire to remain well invested in its people to retain the skills and experience needed to support market demand throughout the cycle. This, combined with lower levels of attrition across the sector, led to a 12 per cent increase in headcount.

To invest in future talent last year 2,573 new people were hired, 1,945 employees were promoted, and around 1,400 graduates and apprentices joined the firm.