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PwC profits on the up despite tough market

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10th Sep 2013
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Accounting giant PwC has reported annual profits rising 1.8% to £740m, despite the continuing tough market conditions of the last year.

The Big Four firm’s latest results were boosted by strong growth in its consulting division as growth in its tax advisory business overcame a flat market for takeovers.

Revenues grew by 3% to £2.69bn, up from £2.62bn in 2012, for the year ended 20 June 2013.

PwC partner pay is also back up at pre-banking crisis levels with the average distributable profit per partner currently standing at £705,000.

The 4% rise in partner profits comes over a period when the Competition Commission has been investigating the audit market and as the profession has faced scrutiny over tax planning services for major corporations.

The firm said that 16% of its total revenue was for work billed to non-UK clients and also highlighted that 62% of the revenue was generated from clients they did not audit.

Revenues across the firm's audit line also grew by 1% to £969m, meaning it remained the largest service line at PwC. The firm’s tax service line saw growth of 3% to £680m, while the consulting division grew by 9% to £478m.

Ian Powell, chairman and senior partner at PwC, said: “We are clear that our growth must be sustainable and profitable, and founded on long-term objectives, such as continually improving the quality of our work, achieving greater diversity among our people, and focused on our contribution to the wider community.

“We’ve focused on delivering a better service to our clients through ongoing investment in our people and technology, and this has helped us to win business and new clients across a range of sectors.”

PwC also said its deals division remained largely level with last year at £562m, reflecting the relatively flat M&A market.

After a challenging year, however, the firm said it was optimistic about the economic outlook, predicting growth of 1.3% this year and 2.3% in 2014.

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