PwC UK delivers growth in an improving market

Published at 00:02 AM on 15 September 2014

PwC, the professional services firm, has today (Monday) reported revenue growth of 5% to £2,814 million for the year ended 30 June 2014, up from £2,689m the previous year.

 

Ian Powell, Chairman and Senior Partner of PwC UK, commented:

 

“Our strong performance reflects an improving economy, the growing confidence of our clients and the ongoing investment we have made in the firm over the past six years to create a responsible, profitable and well diversified business.

“Encouragingly, the UK economy is showing positive signs of rebalancing. We are seeing significant growth potential in the UK regions and the announcement of infrastructure investment in the Northern corridor will provide a further boost.

“Internationally, we are supporting more UK businesses as they look beyond domestic borders for export opportunities.  In addition to our wider investment strategy, we have increased investment in the specific high potential markets of Africa, Middle East and Central and Eastern Europe in direct response to our clients’ needs.  We, like our clients, are looking beyond our borders to pursue market opportunities that exist for British talent.”    

 

Each of our four business divisions grew, with the Assurance practice, which includes the audit business, growing by 6% to £1,025m, Tax by 5% to £714m, Deals by 3% to £580m, and Consulting by 4% to £495m.

 

Regulatory change

As in many other industries our firm has faced significant regulatory change and as a consequence 2014 saw an increase in listed company audit tenders.  We were pleased to be selected as auditors to many companies such as HSBC, Vodafone, British Land, Bunzl and  Morrisons and, while we ceased to be auditor to others, we remain focused on providing a quality service to our clients across our full range of services and in whichever capacity they need us. 

 

Investing for the future

PwC continues to invest for responsible, profitable growth designed to build a balanced and sustainable business.  In 2014 we made direct investment of over £200m, part of the £750m invested over the past six years to grow and transform the business.

 

We continue to innovate and develop new services to support and anticipate our client needs. The firm increased its capabilities in areas that are hot issues for our clients, such as cyber security, data analytics, digital, and real-time assurance.  We have also acquired businesses such as Mokum and Geotraceability, and participated in the PwC global network’s acquisition of Strategy& (formerly Booz & Co) to enhance our reach and capabilities. 

 

We invested in recruiting and developing people throughout the downturn, and this year took on a record 2,700 people, as more than 90,000 people applied for jobs with us. 

 

Business outlook

Commenting on the outlook for the future, Ian Powell added:

 

“I am optimistic about the shorter term economic outlook, we expect the UK economy to grow by around 3% this year and by some 2.6% in 2015. However, there is no room for complacency given the important issues faced by the UK and the potential for global events to affect the economy. Government and business must work together to spread the message that the UK provides a compelling and stable environment to operate in. We are aware of some 100 overseas businesses looking to increase their footprint in the UK, but are equally aware that these companies look for relative political and regulatory certainty before they invest.

“Professional and business support services is one of the UK’s most successful business sectors and is a major creator of jobs and exports. It contributes more to gross domestic product than financial services or manufacturing, and grew throughout the economic downturn. As an integral part of this sector, I am confident that PwC is well-positioned to make a significant contribution to British business and society.”

 

Other financial highlights:

 

  • PwC’s commitment to its long term strategy saw total profit for the year increase to £772m, from £750m in 2013. The average distributable profit per partner was £722,000, up 2% from £711,000 in 2013. 
  • 63% of revenue was generated from clients we do not audit.
  • The firm’s total tax contribution to the UK Exchequer, including the contribution of partners, amounted to £984m (up from £960m in 2013).

 

Key highlights for 2014:

 

  • PwC named Times Top 100 Graduate Employer of the Year for a record-breaking 11th consecutive year, and Graduate Employer of Choice in Consulting.
  • Promoted 53 new equity partners, 40% of whom are women, in addition to the 25 partners recruited externally during the past 12 months.
  • More people  joined us than ever before and we received over 90,000 job applications.
  • Recruited more than 1,300 students and graduates, including 112 school leavers. An additional 795 students joined our paid internship programmes.
  • Hired over 1,400 experienced people and welcomed many more from acquired businesses.
  • Official supporter to the Invictus Games.
  • We have recruited over 90 students onto our ‘Shadow a Female Leader’ programme.
  • Named by the National Apprenticeship Service and City & Guilds as a Top 100 Apprenticeship Employer.
  • Employees volunteered 51,535 hours to community and social initiatives (up 14% from 45,386 hours in 2013).
  • The PwC Social Entrepreneurs Club is helping over 200 social entrepreneurs and is on track to reach 2017 target of 250.
  • Our refurbished Embankment Place head office received the highest ever score under BREEAM, the world’s foremost environmental rating for buildings.
  • Carbon footprint down by 4% compared to last year and waste generated down 31%.

 

Ends

 

Notes to editors:

 

About PwC

PwC helps organisations and individuals create the value they’re looking for. We’re a network of firms in 157 countries with more than 184,000 people who are committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at www.pwc.com.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.

© 2014 PricewaterhouseCoopers. All rights reserved.


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About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. © 2016 PwC. All rights reserved

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