PwC FY22 revenues hit £5bn

PricewaterhouseCoopers (PwC) has reported its total revenues grew 12% year-on-year to £5bn for the year ended 30 June 2022, with Financial Services and Industrial Manufacturing and Services experiencing the strongest growth.

The firm’s Audit and Deals practices both achieved 6% growth to £1.13bn and £906m respectively, and Tax (includings People and Organisation, and Legal services) recorded 9% growth to £1.01bn.

The average distributable profit per partner was £920,000, up 12% year-on-year from £818,000, with an average effective tax rate of 47%.

PwC said it made the biggest investment in UK staff salaries for 10 years which saw 70% of employees receiving at least a 7% increase to base pay, with 50% getting a rise of 9% or more.

Salaries for many entry programmes are also increasing, with starting salaries in audit set to rise by 10%. A further £138m was allocated to UK staff bonuses in FY22, up £10m on the prior year.

However, Kevin Ellis, PwC chair and senior partner, said that high inflation and high employment will impact all businesses, and PwC’s investment to deal with these challenges will likely reduce partner profits next year.

Ellis said: “Demand across all our services has driven our strong performance. This reflects exceptional client demands to challenges and opportunities on multiple fronts. It is a testament to the quality of our people and services and the multi-year investments we have made.

“Our clients have drawn on specialist skills and experience from across our business in response to the pace of change as they’ve dealt with supply chain complexity, the accelerated climate change challenge, energy scarcity and higher inflation issues.”