KPMG revenue grows to 24.8 billion, driven by Advisory

10 December 2014 Consultancy.uk

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.

Global revenue development of KPMG

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%).

Growth FY

Acquisitions
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.

John Veihmeyer, KPMG

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.

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PA Consulting results reveal record 14% revenue growth

17 April 2019 Consultancy.uk

Global professional services firm PA Consulting has reported another year of strong growth, outpacing the global consulting market significantly over the duration of 2018. PA’s revenue boomed by 14%, passing £455.8 million over the course of the year.

Founded in 1943, by Englishmen Ernest Butten, Tom Kirkham and David Seymour, the firm once known as Personnel Administration has since gone on to become one of the largest consulting firms in the world. PA Consulting Group, as it is now known, has over 2,600 professionals and a global presence spanning 18 countries. While turnover took a decade to recover from a rocky spell after the global financial crisis, PA Consulting is now firmly on the upward incline.

PA has booked strong growth in recent years, following its securing of private equity investment from the Carlyle Group in 2015. While the first full year of results following that move were slightly muted, due in part to the altering of how PA measured its results, the decision has clearly paid dividends since. Revenues jumped by 6% in 2017, hitting an all-time high of £400 million in the process.

Annual consulting revenues of PA Consulting versus UK market

Now, in the latest chapter of the firm’s rapid turnaround, the innovation and transformation consultancy has revealed things only got better in 2018. A set of record results released in April have confirmed that fee income rocketed up by 14% over the course of the prior 12 months, hitting £455.8 million. Considering the UK’s consulting market saw growth slow for the second year running (just 5.6%), PA’s performance is even more pronounced, especially in its first year of full results since influential Chair Marcus Agius stood down. 

The firm is also outpacing the global consulting market. Analytics firm Statista estimates that the consulting market expanded by 4.08% in 2018. As a result of such bullish demand, PA Consulting has also bolstered its staffing, boosting its consulting team’s headcount by 10% in the space of 12 months. 

PA’s team was further strengthened with its continued acquisition campaign, which brought three new firms into the fold during 2018. Boston-based innovation company Essential Design, specialist digital service design firm We Are Friday and London-based digital insight and strategy consultancy Sparkler all became part of PA over the course of the year. PA has also announced plans to recruit 400 professionals for its new digital centre in Belfast. 

‘Not traditional’

In terms of client work, in the UK PA supported Skipping Rocks Lab to create an edible alternative to single use plastic drink packaging, and worked on a notable restructuring project at disability charity Scope. Further afield, PA helped Norwegian authorities deliver their citizen-facing digital services, while in the US and India, PA partnered with Virgin Hyperloop One to build the first new mode of transport in a century, one that hopes to revolutionise travel. It even worked with United Nations to identify the technologies most likely to contribute to the achievement of the organization's Sustainable Development Goals.

Commenting on the year’s performance, Alan Middleton, PA Consulting CEO, said, “We’re not a traditional consulting firm and we think this is key to our ongoing success and why 98% of our clients recommend us… Our people are strategists, technologists, digital experts, consultants, designers, scientists and engineers – all of whom bring real-world experience, and apply it at pace. We offer the innovation, design, digital and transformation skills that our clients need to change, fast. There’s a sense of optimism behind our purpose. And it’s a feeling that inspires our people as well as our clients.”

The existing staff of PA also enjoyed a bumper year, as it was revealed that a refinancing manoeuver at the firm was expected to land over 1,000 employee shareholders a significant pay-out. The firm’s debt, which includes vendor loan notes put in place when Carlyle purchased the firm, is set to be refinanced in a deal worth £350 million.