KPMG Europe LLP firms (professional service firms providing Audit, Tax and Advisory services), today report that pro forma turnover in the UK, German, Swiss, Spanish and Belgian** practices was €3.5 billion in the year to 30 September 2009***. This represents a decrease of 0.4 percent on the previous year on a pro forma basis at constant exchange rates.
The results are contained in the firms' latest consolidated accounts, also published today, and underline KPMG Europe LLP's position as Europe's largest fully integrated accountancy firm.
Revenues in the UK were €1.9 billion, down 1.6 percent, while in Germany they were €1.2 billion, 1.7 percent lower.
Other countries together grew by 2.7 percent, on a pro forma basis, to €0.4 billion.
John Griffith-Jones and Rolf Nonnenmacher, joint chairmen of KPMG Europe LLP, said: "This was a creditable performance against the backdrop of the worst financial crisis in almost 80 years. We might have hoped for better economic conditions in our second year as a merged firm but rather than put our expansion plans on hold we have continued to pursue a whole range of strategic initiatives that will shape our performance over future years.
"Our scale has allowed us to play a full and constructive part in tackling the financial crisis, working closely with governments, regulators and companies to battle a storm that might have overwhelmed the banking system."
Overall, top-line growth proved hard to come by as a result of difficult market conditions.
- Audit was the strongest performer, with revenues up a pro forma 3.1 percent at €1.28 billion. In 2009 the firm audited 60 percent of companies in the DAX 30, 25 percent of the FTSE-100 index and 23 percent of Swiss SIX quoted companies.
- The absence of mergers and acquisitions activity and resultant drop in demand for related services meant Tax had a more difficult year. Revenues fell a pro forma 5.4 percent to €837 million. We continued to see strong demand for transfer pricing services.
- Advisory was static at €1.4 billion. The dearth of transactions affected Advisory, too, but the practice was successfully repositioned towards restructuring and debt advisory work. We also continued to grow our Performance and IT business to support client transformation projects and this will continue to be a key area of future growth for us.
Since the year-end the member firms in the Netherlands, Luxembourg, the CIS and Turkey have joined KPMG Europe ELLP. The combined group now comprises firms in 14 countries - including the six in the CIS (Russia, Ukraine, Armenia, Georgia, Kazakhstan and Kyrgyzstan) - and has combined pro forma revenues of €4.5 billion with 31, 000 employees.
John Griffith-Jones and Rolf Nonnenmacher said: "We are delighted that the new joiners have become part of our ambition to create the most successful professional services firm in Europe, for the benefit of both our clients and our people."
Looking ahead, Rolf Nonnenmacher and John Griffith-Jones said 2010 would be another challenging year, though there were encouraging signs of economic recovery. They added: "We are now realising the benefits of joining together for our clients. The combination of greater critical mass, sector focus and shared knowledge enables us to bring them better answers, faster. After two tough economic years, we are hopeful that the economies in which we operate will provide a more favourable environment."
** The KPMG Belgian audit practice is not part of ELLP
*** The figures exclude the audit practices of Belgium and Spain
KPMG Europe LLP was formed by the merger of the UK and German firms in October 2007. The Swiss firm gained regulatory clearance to join KPMG Europe LLP in September 2008. KPMG in Spain joined on 1 October 2008.
Gavin Houlgate, Director of Communications for KPMG in the UK
Tel: +44 (0) 207 694 3902
Mobile + 44 (0) 7795 290855
Marita Reuter, Head of Corporate Communications for KPMG in Germany
Tel: +49 (30) 2068 1118
Mobile: +49 (0) 173 576 4041
Andreas Hammer, Head of Public Relations for KPMG in Switzerland
Tel: +41 44 249 48 20
Mobile: +41 79 335 75 06
Roberto Bodegas Sanz, Director of Marketing and Communications for KPMG in Spain
Tel: +34 914563400
Mobile: +34 618341992
KPMG is the global network of professional services firms who provide Audit, Tax and Advisory services. KPMG Europe LLP firms operate in 14 countries across Europe with over 31,000 partners and staff, and recorded a combined pro forma revenue of €4.5 billion in 2009. KPMG Europe LLP, a UK limited liability partnership, is the legal entity which effectively controls a number of the independent KPMG member firms that have elected to merge with it. KPMG Europe LLP is part of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG Europe LLP and KPMG International provide no client services. The "KPMG Europe LLP group" means KPMG Europe LLP and the firms that have merged with it.