KPMG sees full year revenues hike aided by strong Midlands contribution
KPMG has announced a near 6% increase in full year revenues, from £1,958m to £2,068m.
The firm said it had responded well to market forces, which are changing the shape of the professional services, specifically audit rotation and the move towards providing large scale, managed services online or in the cloud.
The year, to September 30, 2016, saw the advisory firm secure the audits of companies such as John Lewis Partnership, Standard Life, Balfour Beatty and Wood Group, and its management consulting team won large managed services projects such as the Civil Service Learning contract to provide up to 400,000 civil servants with their learning and development needs.
The firm grew across all functions except risk consulting, which saw large bank remediation projects close.
Highlights for the year included mid-market tax, transaction services and management consulting which all achieved double digit growth.
On a regional level, out-going Midlands chairman Mike Steventon said the year had seen some notable successes.
He said that financially, 2016 had been a strong year, with 12% growth for the regional practice, reflecting the strength of the regional economy and the range of skills in the firm’s various teams.
During the year, the firm recruited 92 graduates, 20 audit school leavers, 10 apprentices and promoted 103 people, while KPMG Enterprise and its private capital practice showed particularly strong growth in response to investment over the last twelve months.
He said there had also been a significant increase in IPO and M&A activity, with KPMG advising on more than 50 deals over the course of the year. These included the sale of Tyrrells crisps to Amplify Snacks, MBO of Belfield Furnishings, acquisition of cruise.co.uk to Bridgepoint Development Capital and the sale of Rohan Group to H Young Holdings.
“2016 was a strong year for KPMG’s Midlands practice and I am extremely proud of our achievements and also of the investment we have made in our people,” he said.
“The talented, hard-working colleagues we have within our business is testament to our success, and this is reflected by our financial performance. Progress and innovation in areas such as KPMG Enterprise, private capital and management consulting services, shows we are an adaptable, forward thinking business.
“As devolution starts to reshape our regional economies, there’s a real focus on the Midlands Engine to drive economic growth, and we are committed to contributing to its success. Our ambition is to attract and develop talent in the region and continue to deliver exceptional advice and solutions to our clients, supporting the significant opportunities and challenges that the future will bring.”
Looking ahead to the outlook for 2017, Simon Collins, chairman of KPMG UK, said: “We are living in uncertain times – with our clients considering what a break from the EU will look like and the impact of Trump’s presidency, set against continued themes of wider geopolitical unrest and terrorism.
“Our experts are well placed to help our clients with navigating the year ahead and, in particular, Brexit where we stole a march by appointing a senior level Head of Brexit within weeks of the vote and now have an established dedicated team assisting our firm-wide activity.
“I think our investment in the firm overall and the changes we’ve made to our operations have transformed our agility. I’m confident that we’re well positioned for the next year and beyond.”
