KPMG has in its latest fiscal year booked a record-high global revenue of $24.8 billion, roughly 6% higher than its turnover in the previous year. Its consulting unit, known as Advisory, was yet again the best performer, growing by double-digits in its fiscal year ending 30 September 2014.
In fiscal year 2013 KPMG recorded a revenue of $23.4, which represented a 2% growth rate over FY2012, and following a strong year the Big 4 accounting and consulting firm managed to accelerate its growth. Overall turnover ended up at $24.8 billion, a growth of 6.3%, of which the Americas and EMEA provided the largest contribution. In Europe, growth was particularly strong in Ireland, Spain, Switzerland and the UK. Compared to 2006, eight years ago, the firm’s revenue is up by nearly 50%, reveals an analysis from Consultancy.uk.
Similarly to previous years, Advisory was the largest grower of KPMG’s three core business functions, growing by 10.4% to $9.1 billion, up from 6.5% in FY13. Within Advisory, all service lines showed god performance, with Management Consulting growing 9.6%, Risk Consulting growing 12.3% and Transactions and Restructuring growing 10.8%. A comparison of growth between 2006 and 2014 shows that Advisory has expanded by 72%, considerably higher than Audit (27%) and Tax (58%).
The growth of Advisory was also driven by a number of high profile acquisitions, including AXIA Consulting (Workday Consulting), Stratley (German Chemicals specialist), St. Charles Capital (Corporate Finance), P3 Consulting and Qubera Solutions (cyber security). Other large business-wide acquisitions include Rothstein Kass in the US, and recently IT services firm Crimsonwing was acquired, although its numbers will be consolidated into FY15 figures. The growth could have been even higher if KPMG would not have missed out on Roland Berger – the firm put in a bid for the German strategy consultancy, eventually losing out to a higher bid from rival EY, which in turn was left with empty hands following the firm’s decision to remain independent.
KPMG's global workforce grew by almost 7,000 to over 162,000 partners and staff, the highest number of individuals ever employed across the network. “The quality and breadth of professional services we offer, combined with significant investments we’ve made to strengthen and broaden our services and capabilities, has enabled us to achieve strong and sustainable growth in 2014. At the same time, we have recruited 18,000 graduates and grown our headcount to 162,000 professionals,” says John Veihmeyer, Chairman of KPMG International.
Going forward, KPMG says it is optimistic on its outlook. The business advisory is well placed as a leading choice for talent, in addition the firm is successfully capitalising on upcoming trends, through innovation and the execution of a massive firm-wide five year $1 billion global investment program, says Veihmeyer.