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 €4,997 million (2011: €4,589 million).
On a like-for-like basis and at constant exchange rates, revenues were up four percent to €5,198 million (2011: €5,006 million). Profits for the year reduced by five percent to €861 million (2011: €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 (€2,154 million, up from €2,073 million at constant exchange rates), while in Germany revenue grew by six percent, from €1,179 million to €1,247 million.
“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.”
Group Financial Highlights
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.
Group net sales by function
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.”
A copy of the KPMG Europe LLP Annual Report is available at www.kpmg.com/eu/annualreport
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Media enquiries to:
Gavin Houlgate, Director of Communications
KPMG in the UK
T: +44 (0)207 694 3902
Mark Hamilton, Corporate Communications
KPMG in the UK
T: +44 (0)207 694 2687
KPMG Press Office: 020 7694 8773
About KPMG Europe LLP
KPMG is the global network of professional services firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity, that provide audit, tax and advisory services. KPMG Europe LLP, a UK limited liability partnership, is the legal entity which effectively controls the member firms of the KPMG network that have elected to merge with it ("'KPMG Europe LLP firms"). KPMG Europe LLP and KPMG International provide no client services. KPMG Europe LLP firms operate in 19 countries across Europe with 32,300 partners and staff. The “KPMG Europe LLP group” means KPMG Europe LLP, and KPMG Europe LLP firms. The KPMG Europe LLP group recorded consolidated revenues of €5.0 billion in 2012.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.