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Home » Business News

KPMG in the UK Announces 5% Growth in Revenues to £1.9bn…

Submitted by on December 24, 2014 – 6:15 am |


Simon Collins, UK Chairman of KPMGKPMG, the professional services firm providing audit, tax and advisory services, has announced today an increase in revenues from £1,814m to £1,909m (5 percent) for the financial year ended 30th September 2014.

Advisory services saw a 5 percent annual increase in contribution to profits from £308m to £324m, while audit saw a 2 percent increase from £178m to £181m and tax saw a reduction of 8 percent from £140m to £129m.  Overall profits, before tax, were down 9 percent as the firm invested in its people, new business lines and new offices.  Average partner pay was broadly flat, increasing marginally by 0.3 percent from £713,000 to £715,000.

The employee bonus pool increased by nearly 10 percent from £73m to £80m.

Simon Collins, UK Chairman of KPMG, said: “We have invested substantially across our business: in people training and development, in an improved staff reward package, in new technology and in new offices in Manchester and London.

“A key component of our investment programme is our five ‘strategic growth initiatives’, which include Digital & Analytics and Enterprise for SME businesses. To achieve our growth ambitions in these five areas, we have formed new and ground-breaking alliances, such as with Imperial College, and developed new business lines organically, including an online accounting tool for small businesses. These investments are designed to deliver sustainable future growth for our firm.”

Commenting on transformation in KPMG’s audit practice in 2014, Collins went on to say: “A highlight of the year is our new approach to audit reporting.  This goes beyond the regulatory requirements and is designed to make the audit report more relevant and useful to investors.   Looking forward, our alliance with McLaren Group offers the opportunity to deploy sophisticated predictive analytics on audit work.

“Our efforts are being recognised and, accordingly, we have secured some fantastic audit wins this year, for iconic companies such as Compass, the Royal Mail and Smith & Nephew.  We have won more FTSE 100 audit tenders and retained more FTSE 100 audits put out to tender than any of our competitors.  We audit the largest number of listed businesses in the UK and we take our responsibility to innovate and adapt audit reporting seriously.”

Commenting on developments in KPMG’s Advisory and Tax practices in 2014, Collins added: “During a time of transformation and investment, our business has advised on some of the most exciting infrastructure projects which are shaping the future of the UK, including HS2, the new nuclear power station at Hinkley Point, Thames Tideway Tunnel, and airports expansion in the south-east.  We have even greater ambitions for the future, not least as our advisory business is also working closely with McLaren to apply data and analytics know-how to consulting work such as supply chain management.

“Our tax practice, which has one of the largest indirect tax teams, was disproportionately affected by changes in the indirect tax market and forthcoming EU reforms on supplying non-audit services.  However, the tax practice is on a firm footing for the future by diversifying and innovating with good growth in our corporate tax business, the development of new technology such as ‘KPMG Fusion’, a pension modelling tool, and with the launch of our multi-disciplinary legal services business.  Further investments in our ‘centres of excellence’ in Glasgow and Birmingham are also strengthening our tax offering and creating jobs.”

Highlights from the annual report for 2014:

  • The firm generated £1,909m in revenues and £414m of profit;
  • KPMG in the UK has 588 partners and employs 11,300 staff (an increase of 5 percent);
  • The employee bonus pool has increased by 9.6 percent from £73m to £80m. Average partner pay has increased by 0.3 percent from £713,000 to £715,000;
  • Total tax collected as agent or paid by KPMG, its partners and employees was £711m (an increase of 1.3 percent);
  • The Chairman’s pay for the year, recommended by the Remuneration Committee and approved by a vote of the partners, was £2.5m (an increase of 4 percent);
  • New audit appointments included Compass, the Royal Mail and Smith & Nephew and retained audits include Standard Chartered and Old Mutual.  The firm secured a third of audits retendered in the FTSE 350;
  • New staff reward package announced, including birthdays off, reduced working hours in the quieter summer months, contributions to student loans and a preferential private banking deal;
  • KPMG received 38,000 graduate applications in 2014 for 850 places and announced it will recruit 1,120 graduates and school leavers in 2015;
  • Investment programme focussed on five ‘strategic growth investments’: cyber security, technology, enterprise (SMEs), digital & analytics and ‘P3’ (a people management offering);
  • The firm also announced the most detailed diversity and inclusion targets in the industry.

Commenting on the firm’s investment in its people and launch of a substantially increased staff reward scheme, Collins added: “Our ‘One Firm’ event for all 13,000 staff, contractors and sub-contractors, funded by the partners, provided a platform to announce our new staff reward scheme, which includes birthdays off and contributions to student loans.  To reward the hard work of our staff this year, we have also increased the size of our bonus pool.

“The O2 event also gave us the opportunity to share our strategy for the future of our business and reflect on the role our people have played in shaping historical events such as the successful lobbying of Winston Churchill to include women into the chartered accountancy profession and repatriating assets stolen by the Nazis in World War II.  The role our business plays in society has never been more in the spotlight, illustrated by current debates on tax, audit and public sector work.  It is vital, both to our own future commercial success and for the benefit of society as a whole, that we live the values our predecessors established by playing a positive role in engaging in public debate and in developing our business accordingly.”


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