Growth in all UK offices
Profit per partner up 2.5% to £740,000 at PwC
Despite pressure on big companies to change auditor more frequently, PwC has held its number one position with 38 FTSE 100 clients and has increased its position among FTSE 250 companies to be the joint market leader with KPMG.
The firm saw growth in all its UK offices which contributed to a 10% rise in revenue to £3.08 billion in the 12 months to the end of June.
Regional revenues grew by 15% and in Scotland there was a double-digit rise on the back of internal and external audit wins, regulatory consulting and growth in technology and cyber business.
Group profits increased by 6% to £818 million.
During the last seven years, close to £1bn has been invested in growing the UK firm. In Scotland, significant resources have been released to support various initiatives and the appointment of 18 equity partners, 600 student recruits, and the opening of offices in Glasgow and Edinburgh.
Lindsay Gardiner (left), regional chairman, PwC in Scotland, said: “Our forward looking investment strategy over the last seven years has enabled us to hold our nerve and retain our focus on what really matters: our clients and our people.
“The economy is performing well and business confidence continues to rally. Uncertainties remain, however, particularly with regards to ongoing low oil prices on North Sea investment and operations and, further afield, the potential impact of activity in China and the East on Scotland and the UK.
“I am, however, optimistic about the year ahead. Scottish businesses are incredibly innovative as has been demonstrated through this year’s Private Business Awards and Scottish Business Awards entries, the environment for business is relatively strong, and I believe the UK overall will continue to be very attractive for inward investment. “
UK financial highlights – 2015
· Each of the firm’s four business divisions delivered good growth. Assurance grew by 9% to £1,121 million, tax by 7% to £763m, deals by 8% to £628m, and consulting by 16% to £571m.
· Regional revenues grew by 15% with growth in all UK regions.
· The firm’s total tax contribution to the UK Exchequer, including the contribution of partners, was £1.07bn. The effective tax rate for partners was 48%.
UK non-financial highlights – 2015:
· PwC became the first major employer to drop UCAS points as a graduate recruitment criteria because we want to recruit as broad a range of talented students as possible.
· PwC was the first professional services firm and one of only a handful of businesses to publish its gender pay analysis, as part of the firm’s commitment to diversity and equality.
· The firm has now taken on more than 300 Higher Apprentices in the past three years, and three direct entry school leavers to the firm became partners this year.
· Lord O’Donnell and Justin King joined the Public Interest Body as independent non-executives further enhancing the firm’s governance arrangements.
· The firm increased overall partner numbers to 885 during the year, an increase of 4%, a key part of the ongoing investment strategy.
· Following the launch of successful alliances with PwC member firms in the Middle East, Central and Eastern Europe and Africa, the firm is continuing its strategy of investing in high potential markets, bringing benefits for our clients and the UK economy, and opportunities for our people.