KPMG Partners in the Money

Article excerpt

Byline: John Duckers

The UK arm of acountancy firm KPMG is to give its equity partners an 18 per cent pay rise. It follows a profits surge of ten per cent in 2003, an impressive result considering it remained a tough year for the financial community.

KPMG came in with profits of pounds 233 million for the year to September 30, compared with pounds 212 million for 2002.

Average profit per member jumped to pounds 414,600 -against the previous pounds 352,200.

Mark Hopton, Birmingham senior partner, said that took the figure back to near the 2001 mark as profit per partner had gone into reverse in 2002.

The firm has around 600 equity partners.

The year saw 650 jobs cut across the UK, with around 40 in Birmingham.

Staff who survived the cull got bonus payments totalling pounds 30 million, up from pounds 21 million last year.

Mr Hopton described the firm's overall performance as good.

He said: 'It was a difficult year for transactions -I think they will come back this year but it is difficult to tell how fast.

'Hotspots proved to be pensions and also the growth of public sector services -local authority, education and health work. The Government is channelling a lot of money that way.' Mr Hopton said the scene in Birmingham remained 'competitive', with fortunes to some extent tied to the slow-moving engineering and industrial sectors.

KPMG employs around 1,000 people in Birmingham.

Nationally the depth of KPMG's cost cutting was reavealed with UK revenues for 2003 from continuing operations at pounds 1,008 million, down from 2002's pounds 1,018 million.

Nationally, audit had a turnover of pounds 291 million, up nine per cent; taxwas pounds 267 million down two per cent; corporate finance was pounds 73 million, 12 per cent adrift; corporate recovery came in at pounds 102 million, 24 per cent ahead; transaction services hit pounds 120 million, a 15 per cent slip; forensic notched pounds 27 million, an eight per cent pick-up; while risk advisory services slumped 13 per cent at pounds 128 million. …