Mixed Financial Results For PricewaterhouseCoopers

Thu, 13 Sep 2007

PricewaterhouseCoopers announced a turnover of more than £2bn in a year this week, making the firm the first in the UK to do so.

However, the company also announced lacklustre results - failing to grow as strongly as its biggest rival Deloitte in 2007, although chairman Kieran Poynter insisted its top spot position would not be threatened next year by John Connolly’s firm .

The firm grew fee income by 6 per cent to £2.1bn for year-end 30 June 2007, compared to Deloitte who increased fee income by 15.6 per cent to take revenues past £1.8bn.

PwC posted total profits of £702m, with underlying profits of £631m. Profit per partner grew by 6 per cent to £757,000, with partner numbers up to 822.

Mr Poynter also issued a warning over the impact of the credit crunch on revenues next year. "Unless financial issues arise from debt capital markets, where that becomes a big negative influence, I would expect to see good growth across the practice," he said.

PwC’s tax practice, buoyed by the strong transactions market, increased profits by 13 per cent to £667m, while assurance revenues grew by just 4 per cent in the last year, to £947m.

An additional £71m was made by the firm from the sale of the Southwark Towers lease, which is expected to go once the Shard of Glass is built around London Bridge station – forcing staff to move to the More London complex.

The firm also recorded a sharply reduced pension deficit of only £58m, following its moves to bolster the scheme in the last 18 months.
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