Technology advice drives record turnover at PwC - Financial Times

©Alamy

Professional services firm PwC has made record turnover and hit double-digit revenue growth for a consecutive year, buoyed by growing clamour for assistance with emerging technologies.

PwC’s revenue grew 11 per cent to £3.4bn in the year to June 30, with strong performance across all of its four main business areas. It reflects almost £1bn in investments it has made since the financial crisis in people, technology and infrastructure.

More

On this topic

IN Companies

Offering expertise in technologies like blockchain, artificial intelligence and cloud technology has further expanded the firm beyond its roots in audit. Turnover in consulting was up 26 per cent to £720m.

“We saw huge demand in areas like cyber security, data analytics and technology,” says Kevin Ellis, who took over as PwC’s UK chairman and senior partner in July. “It’s not only market demand — we’re seeing more interest from our graduates in joining these areas.”

He added: “Digital and data analytics will probably be the future of professional services.”

All of the other divisions grew also. Assurance, PwC’s largest business that includes audit, was up 11 per cent to £1.241bn, while tax grew 8 per cent to £822m and deals rose 4 per cent to £654m. Outside of London, UK regional revenues grew by 10.6 per cent.

The firm’s profits increased to £829m, while distributable profit per partner before tax was down 5 per cent to £706,000, due to an increase in the number of equity partners from 885 to 926, and investment in the business. The firm’s total tax contribution — taxes borne and taxes collected — was more than £1.12bn, up from £1.08bn the previous year.

Mr Ellis said that the impact of the UK’s vote for Brexit is still being worked through. He said: “There was definitely a slowdown in the last three months of our financial year but over the past two months we’ve seen that stabilise. The stronger the UK is and the more confident we are going into any negotiations, the stronger our negotiations will be. We’re going on business as usual.”

Last year PwC, the largest of the “big four” professional services firms by revenues, became one of the first employers to drop Ucas points as an entry criteria for graduate jobs, in order to try and improve social mobility and the diversity of its recruits. In the firm’s latest student intake, 38 per cent were first-generation graduates, 73 per cent attended state school, 14 per cent came from homes eligible for income support and 9 per cent were eligible for free school meals.

PwC’s has published its gender pay gap for the third year in a row. Its gender pay gap is 15.2 per cent; 2.6 per cent when adjusted by grade. The firm has published its gender and ethnicity targets for the first time.

Copyright The Financial Times Limited 2016. You may share using our article tools.
Please don't cut articles from FT.com and redistribute by email or post to the web.

http://ift.tt/2covLk8