KPMG views region as crucial area for growth

THE head of financial services firm KPMG in the Midlands said the company had enjoyed a strong 2017 as the group announced record revenues across the UK – but profits fell by almost 20 per cent.

Karl Edge, Midlands regional chairman at KPMG, said that, during this year, the practice had recruited 81 graduates, 24 apprentices, nine school leavers and promoted 112 people. The consultancy practice in the Midlands has grown by 20 per cent as demand has increased for services such as risk, cyber security and operational excellence.

The Midlands team also won some major audit clients including Jaguar Land Rover.

Mr Edge said: “In line with the wider firm, our business across the Midlands delivered a solid performance over the course of the year, with revenue growth of five per cent, building on the strong growth of the last two years.

“I am proud of our financial performance and the investment we have made in our people.

“The talented individuals who work so hard to deliver excellent services to our clients have enabled our strong performance while at the same time building new solutions and making them a success.

“We enjoyed good growth in our audit practice and are particularly delighted with our performance in competitive tenders over the year, securing the audit of Jaguar Land Rover. Our consulting teams also had a particularly good year, driven by increased demand from clients for advice on pressing issues such as cyber security.

“Looking ahead, the Midlands remains a key growth area of the UK economy, however, as recognised by the Industrial Strategy, there are still some challenges that need to be addressed, such as productivity.”

The UK practice is reporting record revenues for 2017, climbing by five per cent from £2.06 billion to £2.17 billion for the financial year ended September 30, 2017.

But the firm said a selection of investment write-offs and one-off items meant the firm’s profits fell by 19.5 per cent. As a result, the firm’s profit before tax and members’ profit shares fell from £374 million to £301 million. This led to a reduction in average partner remuneration from £582,000 to £519,000.

Bill Michael, chairman of KPMG UK, said: “We are operating in a period of unprecedented change and this creates great opportunity for our firm. Our clients are navigating complex regulatory and geopolitical change while technology continually reshapes and disrupts their markets.

“I believe KPMG has a pivotal role to play to help businesses through this period, helping them to adapt, evolve and grow.”