Part­ners at KPMG in £600,000 pay­outs

Yorkshire Post - Business - - BUSINESS / NEWS - Ros Snow­don CITY EDI­TOR @RosSnow­donYPN

Part­ners at KPMG re­ceived bumper pay­outs in 2018, with an av­er­age pay­out of over £600,000 per part­ner af­ter prof­its at the ac­coun­tancy giant jumped in 2018.

The av­er­age pay­out per part­ner rose to £601,000 this year, up from £519,000 in 2017.

KPMG said the bumper pay­outs, to be shared among 635 part­ners, rep­re­sent an in­crease of around 16 per cent on last year.

It comes as the pro­fes­sional ser­vices firm re­ported a 53 per cent jump in prof­its, from £301m to £462m, on the back of im­proved in­vest­ment re­turns in tech­nol­ogy.

On an un­der­ly­ing ba­sis, profit rose 18 per cent in the year to Septem­ber 30 to reach £356m on rev­enue of £2.3bn, up 8 per cent in the fastest ac­cel­er­a­tion of sales in 10 years.

The fig­ures were fu­elled by buoy­ant ac­tiv­ity at KPMG’s deal ad­vi­sory prac­tice, which grew by 14 per cent, while the firm’s au­dit posted growth of 8 per cent.

Work re­lated to Brexit and US tax re­form also drove de­mand for ad­vice, help­ing KPMG’s tax, peo­ple ser­vices and le­gal prac­tice grow by 7 per cent.

KPMG an­nounced rev­enue growth of 7 per cent in its North­ern busi­ness.

Chris Hearld, North re­gional chair­man, said: “Our north­ern busi­ness has had an­other year of im­pres­sive growth, in­creas­ing rev­enues by 7 per cent, ce­ment­ing our mar­ket share and ad­vis­ing on key trans­for­ma­tional projects in both the pri­vate and pub­lic sec­tors.

“This great re­sult is a re­flec­tion of two things. First, it is tes­ta­ment to the tal­ent and un­wa­ver­ing com­mit­ment of our peo­ple. Each and ev­ery one of our staff has had a part to play, and I could not be more proud of their ef­forts over the year.

“And sec­ond, that we con­tinue to op­er­ate in a strong and vi­brant re­gional economy where or­gan­i­sa­tions, large and small, re­gard­less of sec­tor, can dis­rupt, in­no­vate and grow, in turn cre­at­ing op­por­tu­ni­ties for us.”

Look­ing ahead, Mr Hearld said that eco­nomic and geopo­lit­i­cal un­cer­tainty is hav­ing a creep­ing im­pact on con­fi­dence, which in turn is start­ing to bear on in­vest­ment de­ci­sions.

“We re­main laser-fo­cused on sup­port­ing York­shire busi­nesses through this un­cer­tainty, en­sur­ing that they are re­silient to the chal­lenges ahead while re­main­ing alive to those op­por­tu­ni­ties by which they can grow and ful­fil their po­ten­tial,” he said.

The re­sults come at a sen­si­tive time for the sec­tor.

The Com­pe­ti­tion & Mar­kets Authority, the Fi­nan­cial Re­port­ing Coun­cil and Le­gal & Gen­eral Group chair­man John King­man are all sep­a­rately look­ing into the au­dit in­dus­try at the re­quest of the UK Gov­ern­ment.

The in­dus­try is un­der scru­tiny fol­low­ing a se­ries of high-pro­file com­pany col­lapses – such as con­struc­tion giant Car­il­lion and for­mer high street stal­wart BHS.


CHRIS HEARLD: ‘Our north­ern busi­ness has had an­other year of im­pres­sive growth.’

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