• Register
Return to: Home > News > Financial Results > KPMG UK records highest growth in a decade

KPMG UK records highest growth in a decade

KPMG UK’s revenues increased by 8% from £2,172m ($2,766m) to £2,338m for the FY ended 30 September 2018. Its underlying profit increased by 18% year-on-year, reaching £365m.

The firm said that a buoyant M&A market helped grow its deal advisory practice by 14%. Its audit practice grew by 8%, in part due to gaining important new clients.

KPMG noted that regulatory changes and trends within global politics, such as Brexit and US tax reform increased demand for advice, which saw KPMG’s tax, people services and legal practice grow by 7%. The firms consulting business grew by 5%.

The firm hired 1,365 graduates and apprentices, an increase of 22% in student recruitment on last year and the highest intake since 2011. Of these new employees, 48% are based in offices outside of London.

In total, the firm employed 14,587, and increase of approximately 500 from the 13,969 recorded in 2017.

This compares to PwC UK’s growth of 5% to £3bn, Deloitte UK’s growth of 5.1% to £3bn, and EY UK’s growth of 2.7% to £2.4bn.

KPMG UK chairman and senior partner Bill Michael said: “Since taking on this role, together with my leadership team, I have refocused the business on our core strengths aligned to the firm’s public interest responsibilities.

“These actions have put us on the right trajectory. We are seeing growth right across our service lines, attracting talented people and winning major mandates. Our pipeline is strong and I am excited about the future.”

He continued: “Beyond our financial results, the aspect that has pleased me most about the course of the year is the firm’s work to increase social mobility. We’re investing across the United Kingdom, recruiting people from all backgrounds, straight from school and university, to support our growth.”

The results come in the same month as the UK’s Competition and Market Authority (CMA) plans to publish its review in to the UK audit market, following the of public and political scrutiny of the audit market over the last year.

KPMG UK faced heavy criticism in January over the work it conducted for the collapsed outsourcing company Carillion. A report into the company’s collapse by the Work and Pensions and Department for Business, Energy and Industrial Strategy assessed the Big Four to have ‘conflicts of interest at every turn’.

Following the report and the announcement of the CMA launching an investigation into the market, KPMG decided to stop providing non-audit services to the FTSE 350 clients it audits. In the firm’s submission to the response of the CMA market study, it recommended the ban to be rolled out across all audit firms in the UK.

Michael said: “I have been clear that our wider profession faces challenges. In order to safeguard against any perceptions of conflict of interest, we have drawn a clear line between our advisory and audit work for UK listed businesses.”

Top Content

    The UK: uncertain waves rule Britannia

    he UK’s accountancy profession is currently in a period of much uncertainty. The Competition and Markets Authority (CMA) has released its review into the listed audit market which could cause the biggest shake-up the profession has seen in years, the Kingman Review has described the Financial Reporting Council (FRC) as not being fit for purpose and called for it to be replaced. All the while the country remains in a deadlock on Brexit negotiations.

    read more

    Views from the Eurozone

    With Brexit looming, populist governments gaining footholds in a number of countries and movements such as the Yellow Jacket protests in France, 2018 was anything but a quite year for the eurozone. Here leaders report to the IAB on their markets.

    read more

    Eastern promise and how to find it

    With China rising as a global power, Jonathan Minter spoke with ShineWing’s Zhang Ke and Marco Carlei at the World Congress of Accountants 2018 in Sydney, to discuss the cultural challenges that occur when Chinese networks look beyond their border, and the dividends available for those who overcome them.

    read more

    Spain: looking to widen demand

    As Spanish accounting professionals prepare for new audit regulations, the Paul Golden asks what they need to do individually and at firm level to maintain and increase demand for their services.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.