KPMG has revealed its pre-tax profits increased year-on-year by 51% from £288m to £436m in the financial year ending 30 September 2021 (FY21), and its revenues are up 6% from £2.3bn to £2.43bn year-on-year.
Growth in FY21 was reportedly driven by the M&A market, which saw net sales in the firm’s deal advisory practice increase by 31% to £357m, up year-on-year from £273m.
Meanwhile, the firm’s audit practice saw net sales increase by 5% to £634m, while its tax and legal division delivered growth of 8%, with net sales reaching £402m.
Demand from KPMG’s private sector clients for digital transformation services also drove a 13% increase in net sales in the consulting practice to £646m, up 13% from £574m in 2020.
In addition, KPMG completed the sale of its restructuring business and unveiled a transformation programme to invest in the firm. Partners voted to back plans to retain and invest the £300m financial proceeds made from the sales as part of a long-term growth strategy.
This investment will reportedly see the firm invest in its services, such as audit quality, tax and deal advisory, and in “high growth” areas, such as strategy, ESG advice and digital transformation.
On the back of its performance KPMG confirmed a £100m bonus pool was paid to staff and that its partners received an average distribution of £688k, up 20% on 2020’s partner pay.
Jon Holt, chief executive of KPMG UK, said: “The triple whammy of Covid-19, climate change and Brexit has left businesses dealing with complex, intertwined issues, which often span multiple jurisdictions. We’re investing in our multi-disciplinary services to support our clients with these challenges and help them grow their businesses in a sustainable way.
“We are investing in specific programmes targeted at attracting senior diverse talent into the firm in typically under-represented areas, such as programmes like our Women in Deal Advisory Insight programme, where we’re championing inspirational colleagues to build the future diverse talent pipeline.”