Partners at PwC have suffered a 10 per cent cut to their earnings as the impact of the coronavirus hit the Big Four firm’s profits.
Profits at the audit giant fell by 8 per cent to £938m in the firm’s latest financial year, as Covid-19 impacted on the business from March, with distributable profit per partner was down 10 per cent to £685,000.
Like its Big Four counterparts, PwC did not make use of the government’s furlough scheme. Partners across audit firms have taken home less money this year because of the impact of Covid-19 on the firms.
PwC partners have taken a mid-tier cut when compared with other firms. Deloitte partners saw a 17 per cent cut, taking their distributable profits to £731,000, while EY partners saw a cut of just 1.8 per cent, taking their distributable profits to £667,000. KPMG is yet to release its results.
PwC UK chairman and senior partner Kevin Ellis said: “As is to be expected the pandemic had a significant impact on our financial performance in 2020, however I am proud that we have continued to invest in our people and regional growth opportunities.
“We were clear in our response to the crisis from day one that we prioritised providing support and reassurance to our people. We took an early decision not to take government funding through the furlough scheme or loans. Supporting our people enabled us to continue to deliver for our clients. Through the hard work of our partners and staff we have maintained our focus while recognising it’s been a difficult time for everyone and that many of our people have been personally impacted.”
Almost all areas of the business saw increased revenues in 2020, with audit work and consulting boasting the largest revenues of £1,003m and £1,057m respectively, representing growth of 5 and 11 per cent. This year was the first that risk assurance was considered a standalone business division, and when re-analysed to provide a comparative figure revenue fell by 5 per cent to £468m.
Ellis continued: “Audit has proved resilient and versatile, requiring new approaches as Covid restrictions made accessing company sites and data more challenging. Risk Assurance had a solid first year establishing itself as a new standalone business division, with technology risk and cyber security performing well.”