PwC today posted “exceptional” results for the past financial year after surging demand for advice, in the face of “challenges and opportunities on multiple fronts,” bolstered the accountancy firm’s revenues
The uptick in revenues for the year ended on 30 June 2022 will see partners at the accounting firm receive payouts of £920,000 – up 12 per cent on the £818,000 handed out last year.
Extra £105,000 windfall payments from the sale of PwC’s mobility service will see the full sums paid out to the accountancy firm’s partners to more than £1m for the first time in PwC’s history.
The Big Four accountancy firm saw its revenues jump 12 per cent to £5bn as all of its key business lines were boosted by “exceptional” demand for its services.
PwC chair Kevin Ellis said: “Demand across all our services has driven our strong performance. This reflects exceptional client demands to challenges and opportunities on multiple fronts.”
“Our clients have drawn on specialist skills and experience from across our business in response to the pace of change as they’ve dealt with supply chain complexity, the accelerated climate change challenge, energy scarcity and higher inflation issues.”
The surge in demand for advice saw revenues from PwC’s consulting business jump 33 per cent to £1.3bn, in a shift that saw the accountant’s consulting arm become the largest segment of its business.
Clients efforts to adopt cloud computing technologies amid increased digitalization following Covid-19 also boosted PwC’s consultancy business.
“In the face of disruption they want to understand how technology can help them as they transform their businesses,” Ellis said.
Revenues from PwC’s audit segment also surged six per cent to £1.1bn as the firm continued to invest in its audit division by recruiting 550 new auditors.
The surge in audit revenues over the financial year ending in June 2022 comes after PwC was this month fined £2.5m over failing in its audit of BT following the discovery of a £512m fraud.
Looking forwards, Ellis said a combination of “high inflation and high employment, which haven’t been seen together for a long time” will impact “all businesses” as he warned the economic conditions “will likely reduce partner profits next year”.
This week, PwC scrapped its requirements that all incoming graduates have 2.1 degrees or higher amid a battle for talent amongst the City’s top firms.