KPMG UK records a second year of strong growth and invests back into its business

KPMG UK has published its annual results for the financial year ended 30 September 2022. The firm delivered double digit growth for the second consecutive year, recording a 16 per cent rise in revenue from £2.35bn to £2.72bn, with profit before tax increasing from £436m to £449m.

This strong performance follows a record level of investment made by the firm. This year it invested £130m into new hires, alliances and technology as part of its leadership team’s long-term strategy to grow the business, build new services and hire new expertise to support the firm’s clients.

KPMG also invested heavily in its people and in May awarded employees a special overnight flat salary increase of between £2,000 and £4,000. The rise was progressive and designed so that the firm’s more junior employees received the most proportionally. It was in addition to the annual pay increases awarded by the firm to staff in Autumn 2021.

In total KPMG increased its annual wage bill by £132m. It also distributed a significant bonus pot of more than £105m to employees.

Jon Holt, chief executive of KPMG in the UK, said: “We have delivered another year of strong performance thanks to the hard work and dedication of our people. Our three-year strategy, focussed on investing for the long-term, is delivering. We’re growing in a way that enables us to invest for the future, meet client demand, strengthen our multi-disciplinary services and recognise our people.

“Every area of the business contributed to our growth, showing the important role our multi-disciplinary model plays to support our clients with their most complex issues.”

The firm invested £130m in a range of new alliances, technology and senior hires to provide new services and insights to its clients, and to support the firm as it rolls out and tests its hybrid working model.

These investments included the creation of a new 25,000 sq ft innovation and technology hub in the firm’s Manchester office, which will open in 2023, and the formation of a new joint venture with Venture Capital advisory firm Acceleris, to support entrepreneurs across the UK to access finance and grow their business.

Commenting on KPMG’s annual results, Ian Beaumont, office senior partner at KPMG in Newcastle, said: “Our Newcastle office has recorded strong growth across the board over the past year as we support the local business community with its most complex challenges.

“In 2022, we continued to recruit quality people taking our office to over 170 colleagues in Newcastle focussed on serving the North East. Our investment in people recognised the skills and exceptional contribution of our team and the opportunity in the region. Furthermore, we were thrilled to promote five new partners in the calendar year.

“Now, as the North East business community looks to capitalise on the freeport, a thriving energy sector and the latest devolution deal that was brokered in 2022, we’re focused on building on the growth as a firm which brings deep sector expertise and counsel, from Newcastle, across UK business and globally, to help the region overcome this period of economic disruption and truly fulfil its potential.”

By Mark Adair – Correspondent, Bdaily