PricewaterhouseCoopers (PwC) UK anticipates tough trading
conditions ahead, despite reporting turnover of £2.24 billion
($3.95 billion) and underlying profit growth of 7 percent in the
year ended 30 June 2008.

The results confirm the gap between PwC and Deloitte, the second
largest UK firm, is closing.

The margin between the two firms dropped from £305 million in
2007 to £230 million this year. In July, Deloitte reported its
revenues had increased to £2.01 billion following 11.5 percent
growth.

PwC UK chairman Ian Powell said growth remained strong in the
first half but weakened in the second half of the year in what he
described as the toughest economic conditions in a decade.

“The current economic uncertainty has affected business and
consumer confidence with transactional activity down and a lowering
of growth expectations for many UK and international businesses,”
he said.

The UK market leader revealed turnover in assurance grew 3
percent to £1.04 billion, turnover in tax increased 8 percent to
£675 million and turnover in advisory grew 13 percent to £526
million.

The increase in the firm’s advisory practice was attributed to
very strong growth within the performance improvement consulting,
forensic and corporate finance businesses.

PwC predicted human resource and sustainability services will
continue to grow strongly. The firm said in the past year its
sustainability business had doubled in size.

Powell, who took over from Kieran Poynter in July, said that
over the next 12 months the firm will pursue advisory opportunities
to corporate, mid-market and entrepreneurial private companies.

“We also see huge opportunities flowing from markets outside the
UK and we are making the right investments to maximise these
opportunities,” he said.