KPMG Europe has reported a 0.4 percent drop in its combined pro forma revenue to €3.5 billion ($5.1 billion) for the year to 30 September 2009. This is expected to jump significantly in 2010 with the addition of new members.
The combined turnover of KPMG’s UK, German, Swiss, Spanish and Belgian practices decreased by less than 1 percent on the previous year on a pro forma basis at constant exchange rates.
KPMG said its UK and German revenue was down 2 percent to €1.9 billion and €1.2 billion respectively.
Other countries together grew by 3 percent, on a pro forma basis, to €0.4 billion.
Since the year-end, member firms in the Netherlands, Luxembourg, the CIS and Turkey have joined KPMG Europe. The combined group now comprises firms in 14 countries, including the six in the CIS (Russia, Ukraine, Armenia, Georgia, Kazakhstan and Kyrgyzstan), and has combined pro forma revenues of €4.5 billion with 31, 000 employees.
Business as usual
The joint chairmen of KPMG Europe John Griffith-Jones and Rolf Nonnenmacher described the performance as “creditable” against the backdrop of the financial crisis.
“We might have hoped for better economic conditions in our second year as a merged firm, but rather than put our expansion plans on hold we have continued to pursue a whole range of strategic initiatives that will shape our performance over future years,” Griffith-Jones and Nonnenmacher stated.
“The combination of greater critical mass, sector focus and shared knowledge enables us to bring [clients] better answers, faster.”
In terms of service lines, audit performed the best with revenues up by 3 percent to €1.28 billion. Tax services fell by 5 percent to €837 million due to the absence of mergers and acquisitions activity, which led to a drop in demand for related services. However, the practice continued to see strong demand for transfer pricing services.
KPMG’s advisory services remained static at €1.4 billion, which the firm said was down to it repositioning towards restructuring and debt advisory work.