KPMG UK revenues up 5% despite tax practice dip
Tax practice fee income falls 8% despite solid growth in other areas
KPMG has announced 5% growth in its UK fee income in the year ended 30 September 2014, despite a significant dip in its tax practice’s income.
Overall revenues hit £1.9bn, up from £1.8bn the year before, but tax saw a reduction of 8% to £129m, from £140m.
KPMG UK chairman Simon Collins said its tax practice 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,” said Collins.”Further investments in our ‘centres of excellence’ in Glasgow and Birmingham are also strengthening our tax offering and creating jobs.”
Advisory services saw a 5% increase to £324m from £308m, while audit saw a 2% rise to £181m from £178m. Overall profits before tax were down 9% to £414m, which the firm attributed to “investment in its people, new business lines and new offices”.
Average partner pay was broadly flat, increasing marginally by 0.3% to £715,000 from £713,000. Meanwhile, the employee bonus pool increased nearly 10% to £80m from £73m.
“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,” Collins added.
One audit partner, Jimmy Daboo, received the Outstanding Industry Achievement award at the British Accountancy Awards in November.