Partners take hit
KPMG starts year strongly as hybrid future beckons
KPMG profits and revenue fell last year
KPMG said it has started its current financial year strongly after a decline in revenue and profit caused by the pandemic.
Partner payouts were cut for the year to the end of September as underlying profit at the big four accountancy firm fell to £288 million from £307m in 2019.
Average partner distribution was down by 11%, from £640,000 to £572,000 as the firm prioritised protecting jobs and supporting employees.
Despite the pandemic’s impact on seven months of the firm’s financial year, revenue decreased by just 4% from £2.4 billion to £2.3bn.
The decrease was driven in part by the sale of the firm’s pensions business, which completed in March 2020. Excluding the disposal of the pensions business, like-for-like revenue reduced by 2%.
The audit practice posted 3% year-on-year growth in net sales to £606m. The tax and legal team saw a decrease in net sales of 6% to £373m.