KPMG Europe LLP ('ELLP'), the professional services firm providing audit, tax and advisory services, announces today that combined turnover grew by nine percent in the year to 30 September 2012, taking revenues to EUR 4,997 million (2011: EUR 4,589 million).
On a like-for-like basis and at constant exchange rates, revenues were up four percent to EUR 5,198 million (2011: EUR 5,006 million). Profits for the year reduced by five percent to EUR 861 million (2011: EUR 903 million).
ELLP's investment in important emerging economies such as the Gulf, Turkey and CIS continued to pay off, with strong revenue growth recorded in those regions. Turkey was the fastest growing single country, recording growth of over 20 percent. In the two largest member firms, revenues grew by four percent in the UK (EUR 2,154 million, up from EUR 2,073 million at constant exchange rates), while in Germany revenue grew by six percent, from EUR 1,179 million to EUR 1,247 million.
Rolf Nonnenmacher, Chairman of ELLP, said:
"We have seen a creditable performance from ELLP firms in what remained a difficult marketplace. The downturn in Europe has become a long and lingering one and the environment is difficult for companies across sectors. In such times, it is vital that we focus relentlessly on providing our clients with the services they really need, to help them follow their change strategies and achieve sustainable growth. If we continue to do this, we can look to the future with confidence.
"Meanwhile, the debate over the future of Audit continues in the wake of the financial crisis. The direction of that debate, particularly in Europe, is a cause of major concern. We are not against change, nor are we interested in special pleading. But EC reforms could end up having the unintended consequence of weakening rather than strengthening standards - the last thing we need at a time when investor sentiment is so volatile. Any reform to the Audit regime in Europe must be done with the very greatest of care."
This year as last year, Risk Consulting services saw the highest level of growth at 16 percent, reflecting the continuing need for clients to manage risk, reputation and compliance carefully. Management Consulting also grew, while Transactions & Restructuring saw a return to revenue growth after dipping last year. Conditions continued to be tough for the Audit and Tax functions. Audit net sales were held flat at 2011 levels, whilst the Tax function achieved modest growth of two percent.
- Audit: EUR 1,886 million - flat
- Tax: EUR 1,018 million - up two percent
- Transactions & Restructuring: EUR 671 million - up three percent
- Risk Consulting: EUR 546 million - up sixteen percent
- Management Consulting: EUR 461 million - up seven percent
Jaap van Everdingen, Chief Operating Officer of ELLP, said:
"We have continued to invest in high growth areas of the business and in targeted programmes that will boost our offering and the capabilities of our teams. In a tough market, we know that we need to differentiate ourselves through the quality of our services and our people. The world is entirely different to the one that existed before the financial crash in 2008. We need to think in entirely new ways about the complex challenges our clients face. I am confident that there remains real room for growth for service providers that get it right."
Other highlights in the year included:
- For the third year running, KPMG was ranked second amongst the world's most attractive graduate employers by Universum - leading the way amongst the Big Four
- Nearly 200 major multinational clients headquartered in Europe and inbound US, Chinese and Japanese companies with major interests in our market
- Continued investment in three Centres of Excellence in Europe, in Financial Services (London), Energy & Natural Resources (Moscow), and Sustainability & Climate Change (Amsterdam)
- Headcount growth of eight percent to 32,300 partners and staff (average through the year)
- 9,600 recruits this year of partners, experienced hires and graduates
- An emerging leaders programme with 750 participants
- New 'virtual classroom' training to appeal to the younger, Generation Y demographic in the firm
- Over 80,000 hours of volunteering by staff, up five percent on prior year
A copy of the KPMG Europe LLP Annual Report is available at http://www.kpmg.com/eu/en/about/pages/annual-report.aspx.