KPMG profit for UK falls five per cent

Elizabeth Fournier
PROFESSIONAL services firm KPMG is poised to announce a five per cent dip in profit for the UK this morning, despite a revenue lift of seven per cent.

In the twelve months to 30 September 2011, profit dropped from £416m to £396m, while revenues rose from £1.6m to £1.7m.

The partners’ profitpool fell to £683,000 from £763,000 in 2010 and UK chairman John Griffith- Jones (pictured) faced a modest pay cut from 2.69m in 2010 to 2.62m last year.

The big four firm’s biggest growth was in its risk consulting unit, where business increased 43 per cent.

Meanwhile its management consultancy and tax businesses grew by 11 and 12 per cent respectively. Its T&R (Transactions and Restructuring) division saw a loss of five per cent. KPMG said its audit unit revenues had dipped by three per cent in the face of intense competition.

Turnover across KPMG Europe hit €4.6bn (£3.8bn), and on a like-for-like, pro-forma basis at constant exchange rates, revenues were up five per cent from last year’s €4.5bn to €4.7bn.

Growth in the group’s UK, Russian and Turkish business offset a weaker performance in Germany, where revenues were flat at €1.2bn.

Joint chairmen John Griffith- Jones and Rolf Nonnenmacher called the results a “robust a challenging economy”.