PwC grows 7%, but partner profits drop

The UK and Middle East wing of Big Four firm PwC reported a 7% increase in its fee income to £2.6bn for the year to 30 June 2012. Profits for the year were up 10% to £727m, but individual partners saw their actual profit shares drop £28,000 from last year to £679,000.

PwC has taken on 2,300 staff during the past year, including more than 1,300 graduates and school leavers.

The firm’s various practices made the following contributions to the total fee income for the UK and Middle East, with growth rates in brackets:

  • Assurance £963m (up 6% from £909m in 2011)
  • Tax £659m (up 2% from £645m)
  • Deals (business recovery, corporate finance etc) £561m (up 8% from £518m)
  • Consulting £438m  (up 13% £389m).

“We continue to see high growth potential for our consulting, risk assurance, forensic and actuarial businesses, as well as our Middle East firm,” said chairman Ian Powell in the firm's results announcement.

Out of the total profit for the year of £727m (2011: £656m), the amount available for division among members was of £672m (up 8% from £622m last year). The average profit per partner disclosed in the accounts increased from £763,000 to £798,000, but deductions to cover annuity payments to certain former partners other equity adjustments brought the distributable profit per partner down 4% from £707,000 in 2011 to £679,000 for this year.

Continued...

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Comments

Wow.

wilcoskip | | Permalink

It's a different world....

Good stuff

Ron Banerjee | | Permalink

It is a different world wilcoskip. I have to say being ex-PwC I am happy to see them doing well although that life was not for me.  

Absolutely

wilcoskip | | Permalink

Good on them - I'm sure they work really hard for what they have.  I nearly jumped into a big 4 firm myself once, but I doubt it would have worked out well.  I know myself well enough now to realise that I'm just not a Corporate person - I'm much happier in a small firm or (as I am now) running my own one-man practice.

my deloitte mate earned 350k last year ....

Lancsboy2 | | Permalink

.... and i want to catch him up!  

 

sadly i feel i may be on a losing bet .... but i reckon by year #10 i should be on £1m fees @40% margin .... not bad. we'll see!  

 

big 4 partner income is skewed in favour of the london / sexy clients - mean average partner wages are much lower than £679k.

Interesting

malcolm141 | | Permalink

Having done some reading on Positioning for professional firms I read the headline of growth of 7% but lower partner profits with a vision to be the biggest by fee income and wonder if this is a viable strategy.

Market share doesn't equal profit share...perhaps all of us need to think about this?

Malcolm

Accountants North London