KPMG is poised to become Europe's largest accountancy firm after it voted to merge with its German sister company.
The combined professional services firm will boast revenues of #2 billion when it comes into existence next year.
Meanwhile, KPMG reported a bumper 2006, with a 14 per cent increase in turnover from #1.281 billion to #1.454 billion. Operating profits in the year to September 30 increased by 19 per cent from #314 million to #373 million.
On the back of this performance, KPMG – which employs 1,000 in Birmingham – increased its profits per partner by 20 per cent to #680,000. The office could add another 50 employees during the course of 2007 following a strong performance in pensions, public sector work and mergers and acquisitions.
Mark Hopton, regional chairman of KPMG, said: "2006 has been a a strong year for KPMG.
"We have done well in all areas, particularly in pensions where we have looking at issues around scheme deficits, and the implications for executives around A Day in April.
"The volumee of public spending into health, regeneration and education has opened oppurtunities for our advisory services, while there has been a strong level of M&A activity. There is a lot of cash out there looking for a home ."
Speaking about the annual performance, John Griffith-Jones, chairman and senior partner of KPMG, said: "Three years ago, we took the decision to link closely our commercial and employment strategies. I believe we are now seeing the rewards from that decision and have in place solid foundations for the future."
Separate votes by KPMG partners in the UK and German firms earlier this month overwhelmingly approved a proposal to merge, creating, KPMG Europe LLP.
The merger in October 2007, will be led by two joint chairman – Mr Griffith-Jones and Rolf Nonnenmacher, chairman of KPMG Deutsche Treuhand- Gesellschaft.
