Following mergers and expansion within the year, this represents an increase of 16 percent on the prior year (2009: €3,495 million). On a like-for-like, pro-forma basis, and at constant exchange rates, revenues were €4,280 million, a decline of three percent on the prior year.
The totals represent an aggregation of revenues across the ELLP group of firms, and reflect significant variations in individual countries during different stages of the economic cycle. Revenues in the UK were unchanged on a like-for-like basis at €1,843 million, while in Germany turnover was €1,187 million, down four percent.
Following the year end, KPMG firms in Norway and Saudi Arabia voted to join the merger. ELLP firms will now span 16 countries and employ 30,000 people.
John Griffith-Jones and Rolf Nonnenmacher, ELLP joint chairmen, said:
"This was a strong financial performance in a tough economic environment, and a year in which we made enormous progress in building a powerful grouping of European firms. We have begun to demonstrate the impact we can have when we fully mobilise our people, our resources and our capabilities across borders to help our clients overcome the complex challenges they face.
"The Group is now realising the advantages and synergies of integrating our firms. This allows us to focus on providing clients with outstanding quality and value, while keeping costs tightly controlled. As a result, we have gained market share in some key sectors, and won important new assignments with key clients."
Group financial highlights
Performance & Technology was the strongest performer, reflecting the increasing
needs of business for support on issues including revenue enhancement, cost optimisation, business intelligence, systems integration, supply chain and procurement. Audit and Tax produced a creditable performance in a tough market. Among markets, there was good growth within Financial Services, reflecting the large amount of regulatory focus and change within that sector, and also Private Equity, where there was renewed appetite for deals and new investments.
Group pro-forma revenues by function
- Audit: €1,787 million - down seven percent
- Tax: €865 million - down two percent
- Transactions & Restructuring: €716 million - down four percent
- Performance & Technology: €457 million - up 17 percent
- Risk & Compliance: €455 million - down eight percent
Group pro-forma revenues by market sector
- Consumer & Industrial Markets: €1,469 million - down eight percent
- Financial Services: €1,259 million - up four percent
- Infrastructure, Government & Healthcare: €971 million - down one percent
- Information, Communications & Entertainment: €451 million - down 17 percent
- Private Equity: €130 million - up 20 percent
Investments
ELLP has an ambitious business plan which will involve significant investment over the next three years, and will build on our ability to draw on a rich diversity of skills and talent across member firms. ELLP expects to increase its headcount of client facing staff by 9,500 by 2013. Particular areas of focus will include Financial Services, Healthcare, Government & Infrastructure, Performance & Technology, Tax and Communications and Media.
Additionally, ELLP has created two new centres of excellence. The energy and natural resource ('ENR') group, based in Moscow, will combine ENR expertise across ELLP countries, while in London there will be a centre focusing on financial services risk and regulation.
Richard Bennison, ELLP Chief Operating Officer, said:
"2010 was a year of significant achievement for KPMG Europe LLP, and we now have a base for significant future growth. At a time when businesses are becoming more global, capital markets are converging, regulation is becoming more complex, and economic power is shifting rapidly from West to East, our ability to make connections - irrespective of national borders - sets us apart in the marketplace."
Highlights in 2010
- Three non-executives appointed with the key role of enhancing governance and transparency, strengthening the capital markets' confidence in quality, and extending communications with stakeholders
- Business students ranked KPMG second among the 'world's most attractive employers' - ahead of other 'Big Four' firms
- KPMG community programmes - supporting education, employability, enterprise and the environment - amounted to a total community investment of €15.3 million
- More than 6,000 people across ELLP firms volunteered 58,500 hours of time supporting community programmes
- ELLP firms reduced their CO2 emissions by 36 percent - including a 17 percent reduction in air and car travel
Outlook
Looking ahead, John Griffith-Jones and Rolf Nonnenmacher said:
"2011 is likely to be another year of gradual, and probably uneven, recovery for the global economy. Our clients will need to continue to focus on improving their financial, risk and operating processes to prepare themselves for better times.
Our new brand position - "cutting through complexity" - sends out a strong message to out clients that the support we provide is now sharper, more focused, more useful and increasingly valuable. It also says that, despite the immediate economic challenges the world continues to face, we see many good reasons to be optimistic."