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KPMG boosts staff bonus pool by 20% following 'tough year'

Professional services firm, which has 583 partners and employs 10,800 staff after cutting about 3 per cent of its workforce in 2012, said UK profits rose 27 per cent to £455 million in the year to September 30

KPMG's Birmingham office at One Snowhill
KPMG's Birmingham office at One Snowhill

Accountancy giant KPMG has boosted its staff bonus pool by 20 per cent after restoring profits growth following the "first and toughest year" of a three-year turnaround plan.

The professional services firm, which employs more than 1,000 people at its One Snowhill offices in Birmingham's Colmore business district, said UK profits rose 27 per cent to £455 million in the year to September 30.

Average pay for partners increased by 23 per cent to £713,000, while the staff bonus pool lifted by 20 per cent to £73 million. The business has 22 offices across the UK employing 583 partners and 10,800 staff after cutting about 3 per cent of its workforce in 2012.

Simon Collins, who is UK chairman and senior partner, is to receive £2.4 million after his remuneration package was approved by a vote of partners.

Mr Collins, who founded KPMG's debt advisory practice in 1998 and became chairman in 2012, said: "We have completed the first and toughest year of our three-year transformation plan; getting a sustainable grip on the bottom line.

"I'm really proud that, as a result, we have generated double-digit growth in profitability, which boosts us from fourth to second of our peer group."

Revenues increased marginally by 0.4 per cent to £1.81 billion, with the audit division posting the largest improvement in profit contribution, up by 16% to £178 million.

The arm was recently boosted by consumer goods firm Unilever's decision to ask KPMG to audit its books after 27 years with PwC - weeks after KPMG's work for banking giant HSBC went in the opposite direction.

Earlier this year, the Competition Commission urged major companies to rotate their auditors every 10 years amid concerns about the level of competition.

Advisory services saw a 15 per cent annual increase in contribution to profits to £308 million, while tax saw a small reduction to £140 million.

 
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