PricewaterhouseCoopers (PwC) has cemented its position as the highest earning professional services firm in the UK, reporting growth of 4% to £2.3 billion ($3.53 billion) in the year to 30 June 2010.
Over a similar reporting period, PwC stretched its lead over nearest rival Deloitte by £68 million to £347 million.
The firm’s advisory business produced strong revenue growth of 9% to £804 million. Audit revenue grew 4% to £893 million while tax revenue dropped 2% to £634 million, affected by a decline in M&A advisory work.
Other highlights of the past year include the formation of a strategic alliance with PwC’s Middle East firms and the acquisition of corporate performance management business Paragon.
Partners pay cut
Despite a solid increase in revenue, the partners’ share of profits fell by 2% to an average of £759,000. PwC said the decrease is due to the firm’s investment strategy.
PwC senior partner and chairman Ian Powell received 9% pay rise to £3.6 million, a figure that is set by the firm’s partners.
Powell said he considers the performance as good given the market conditions.
“While we see some signs of an economic recovery, the continued competitiveness of the UK economy remains challenging. I remain convinced that as a firm we took the right decision last year to hold our nerve and continue to recruit and invest in our business,” Powell said.
In the 2009/2010 fiscal year, PwC recruited 1,750 staff, which included appointing 57 partners. PwC said it is planning to recruit 800 staff and 1,200 graduates in the next 12 months.