PwC, the professional services firm, has reported record revenue of £3.60bn for the year ended 30 June 2017, up 5% from £3.44bn last year, as the firm continues to invest in people, technology and its regional presence in response to client demands.
For the third consecutive year PwC’s results are being released alongside a fully digital annual report, entitled Leading in Changing Times – making a difference, which provides detailed insight into the firm’s strategy, performance and societal contribution.
Kevin Ellis, PwC Chairman and Senior Partner, commented:
The Assurance, Consulting and Tax business divisions grew by 4%, 7%, and 7% respectively, with the Deals practice down slightly (-1%) as strong transaction services based growth was offset by the winding down of some long-term insolvency and forensic assignments. The Middle East practice performed particularly strongly, up 23%.
Profits for 2017 were £822m, down 1% on 2016, as the firm continued to invest heavily in people, technology and growth areas. The average distributable profit per partner before tax was £652,000, down 8% from £706,000 last year, with the overall number of equity partners increasing to 953, from 926 last year.
Our clients and investments
Kevin Ellis, PwC UK chairman and senior partner of PwC, commented:
New innovations include using artificial intelligence in audits, acquiring data technology firm Selera Labs and GE’s tax team and technologies to digitise tax services, investing in Brainspace and Seal technology to apply AI in forensic investigations and deals, and using machine learning techniques to help predict GDP and other economic trends.
The firm established an alliance with CodeBase, one of Europe’s largest tech incubators, based in Edinburgh, to support fast growth businesses, and the Scale-up programme helped 33 disruptive start-ups across the UK grow their businesses, raise equity and build their networks. The cyber security practice, working with the National Cyber Security Centre and BAE Systems, uncovered and disrupted a major global cyber espionage campaign (Operation Cloud Hopper).
Investing in core services is critical to the firm’s ongoing success and this year the audit quality review results from the Financial Reporting Council (FRC) were particularly strong. A number of historical regulatory matters were concluded and improvements made to processes and procedures.
PwC has seen significant growth across the UK regions and invested to reflect market opportunities, moving into new offices in Leeds, Bristol, Aberdeen and Southampton, opening a technology industry hub in Reading, building a specialist blockchain team in Belfast, and recruiting 55% of our 2017 graduates into roles outside London.
Our people and social mobility
More than 1,500 graduates and school-leavers, including 151 higher apprentices, started their careers with PwC and 960 students undertook paid work experience and internship opportunities. The firm hired graduates from 76 universities and visited 178 schools to help potential recruits understand the career options available. Over 1,300 experienced professionals were also recruited.
In Northern Ireland, 39 school students spent some time this summer with PwC Belfast on two lower sixth work experience programmers - Business Insight Week and PwC’s Big Data Summer Camp. By September, just under 40 school-leavers will have joined PwC for full-time career roles, taking to 150, the total number students who have joined PwC, direct from school, over the past five years.
Kevin Ellis concluded:
2017 non-financial highlights:
Notes to editors:
Total tax contribution is based on the taxes borne by the firm and partners which include income tax, employer National Insurance Contributions and business rates and the taxes collected on behalf of the government – PAYE, net VAT and employee National Insurance Contributions.