PwC UK, the professional services firm, has reported revenue of £3.76bn for the year ended 30 June 2018, up 5% from £3.60bn last year, as the firm continues to invest in people and technology across the UK to support its clients. The firm’s financial performance is published today (Monday 17 September) in a fully digital annual report, Leading in Changing Times: Working Together (www.pwc.co.uk/annualreport), with detailed insight into the issues that matter, including diversity, purpose, societal contribution and strategy.
Kevin Ellis, PwC UK Chairman and Senior Partner, commented:
“Despite uncertainty over Brexit, all four of our business divisions grew this year, with high demand for technology-related services, including cyber, data analytics and GDPR. Twenty-nine percent of the firm’s revenues came from inbound - organisations headquartered outside the UK - highlighting the importance of the UK as a global business hub.
“Momentum in our business is good, driven by a strong deals market and demand for technology-driven business expertise, as we see organisations turn to us to help them transform their business models, many in response to digital disruption.”
Assurance revenues increased by a solid 3%, Consulting revenues were up by 1%, Deals grew strongly by 10%, and the Tax practice, which includes specialists in areas such as immigration, legal services and pensions, experienced good growth of 7%. The Middle East practice grew by 15.7% in US dollar terms as client demand remained strong.
“During the year there has been significant scrutiny of our profession and the audit market in particular, with recent commentary highlighting concerns over competition, choice and audit quality. We are committed to helping regulators find practical remedies to increase choice and are clear that audit quality must be the top priority.
“This year we settled two Financial Reporting Council investigations (BHS and Tenon) where our work fell below the standards expected of us and that we demand of ourselves. Our goal is always to deliver work of the highest calibre. When we get things wrong we put our hands up, learn the necessary lessons and improve our processes. Audit remains a fundamental part of the firm and the commitment to continuously improve audit quality is at the forefront of our strategy.
Investment in technology
“We are adopting new technologies to ensure our business is efficient and connected for the future. We’ve made a step change in our own digital transformation this year with significant investment in cloud-based technologies such as Google for Work, Salesforce, and Workday, as well as continuing to invest in emerging technologies expertise in AI, virtual reality and a drones team to build and innovate client services.
“We’ve continued to grow our cyber, data and analytics, and technology risk propositions and developed data visualisation and machine learning tools to enhance the insights we provide to businesses. We’ve opened Frontier in London, a creative space to collaborate with clients and bring our emerging technology teams together. Our research into the potential economic impact of AI and drones have helped fuel debate on how we harness these technologies responsibly and effectively.
“We launched a fully funded tech and data degree apprenticeships at five UK universities - Birmingham, Edinburgh, Leeds, Queen’s in Belfast, and St Andrews - giving over 100 students per year a traditional university experience while receiving paid on-the-job training. Over 60 organisations signed up to the Tech She Can Charter we launched to help ensure more young women can focus on pursuing technology careers.
“We are proud that tens of thousands of people applied to work for us this year, and more than 3,400 school leavers, graduates and experienced professionals joined the firm. As a major UK employer we believe our business is stronger for having a diverse workforce. With technological changes having a significant impact on the jobs market it is more crucial than ever that we ensure high skilled and high paid jobs of tomorrow are attainable regardless of a person’s background.
“We made a number of changes to our recruitment processes to reflect this, including launching an action plan to promote social mobility, introducing an innovative Flexible Talent Network to open up new opportunities for people who don’t want to work a traditional work patterns, banning all-male shortlists and expanding our paid work experience opportunities. We took steps on issues we know matter to our people, extending our Green light to Talk mental health campaign and sponsoring Pride.”
2018 financial highlights:
Revenues by business line:
|Business area||2018 revenue||Growth v 2017||2017 revenue|
2018 non-financial highlights:
Notes to editors:
Digital Annual Report
We’re using case studies, data explorers, infographics and videos in our Annual Report to help people learn more about our firm, allowing us to be more transparent about what we’re doing, how we’re innovating, and what we stand for. We hope this will help build understanding of who we are and what we do. Please do take a look at www.pwc.co.uk/annualreport.
Total tax contribution
This is based on the taxes borne by the firm and partners which included corporation tax, 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.
At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 223,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.
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