News
Jessica Fino 17 Sep 2018 01:10pm

PwC’s UK revenues hit £3.76bn

After a fall in profits last year PwC posted an increase of 13.7% with growth across all service lines

The Big Four firm said its revenues grew from £3.6bn to £3.76bn for the year ended 30 June 2018, while profits increased from £822m to £935m.

Profit per partner - before tax - also increased to £712,000, compared to £652,000 in 2017, when it dropped 8%.

PwC remains the largest of the Big Four in the UK. Last month Deloitte posted revenues of £3.58bn and profits of £584m, but its profit per equity partner was higher at £832,000 after tax.

The firm’s gender pay gap slightly improved but remains the widest among the four biggest firms.

Including partners, the pay gap stood at 43.2%, compared to 43.8% last year. Excluding partners, the figure declined to 12.2% from 13.7%.

Its BAME (black, Asian and minority ethnic) pay gap increased to 36.2% from 35.9% last year, as well as its gender bonus gap, up from 37.5% to 37.8%.

Kevin Ellis, PwC UK chairman and senior partner, pointed out that, “despite uncertainty over Brexit”, all four business divisions grew this year, with revenues at its deals and tax divisions rising 10% and 7% respectively to £711m and £941m.

Its biggest division, assurance, grew 3% to £1.33bn, while consulting grew 1% to £778m.

He added that 29% of the firm’s revenues came from inbound - organisations headquartered outside the UK – “highlighting the importance of the UK as a global business hub”.

One year after warning against a “challenging and complex market” and a “slowdown in some sectors due to uncertainties related to the EU Referendum result and the US presidential and UK general elections”, the chairman said today “momentum in our business is good, driven by a strong deals market and demand for technology-driven business expertise”.

Ellis also said there has been “significant scrutiny of our profession and the audit market in particular” this year, with concerns over competition, choice and audit quality.

“We are committed to helping regulators find practical remedies to increase choice and are clear that audit quality must be the top priority,” he added.

Ellis also mentioned the settlements PwC paid to the Financial Reporting Council reached this year in relation to BHS and RSM Tenon. He admitted the firm’s work “fell below the standards expected of us and that we demand of ourselves”.

“When we get things wrong we put our hands up, learn the necessary lessons and improve our processes,” he said.

PwC revealed 104,073 people applied for a job at the business this year. It recruited 2,144 experienced staff and 1,297 graduates and school leavers.

Furthermore, 46% of these new hires were women, and 29% were BAME.

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