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KPMG write offs hit partner pay
19 December 2017
KPMG recently announced a 5% increase in revenues from £2,068m to £2,172m for the financial year ended 30 September 2017. However, the investment write offs and one off items saw the firm’s profits decrease by 19.5%. As a result, the firm’s profit before tax and members’ profit shares fell from £374m to £301m. This led to a reduction in average partner remuneration from £582,000 to £519,000.
Meanwhile the firm pointed to the double-digit growth in audit, establishing it as #1 auditor of both the FTSE250 and FTSE350. It secured the audits of BT, Legal & General and Micro Focus among others.
The management consulting practice also grew by 11%, driven by clients seeking new and cost-effective operating models for areas such as IT services, finance, people and learning.
Chairman Bill Michael said: “We took some tough decisions, writing down our stake in a selection of historic investments where performance has not met expectations.” He went on to say KPMG was confident about the strength of the UK economy and have plans to recruit an additional 2,500 colleagues in the forthcoming months.
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