PwC revenues grow by just 0.5%

Ian Powell, PwC

The toll of the recession on the big accountancy firms is illustrated again today with PwC revealing the firm has seen growth, but by only half of one percent.

Results from the firm, released alongside its annual report, show UK revenues have gone up by around £10m to £2.25bn for the year ending in June.

The firm's closest rival, Deloitte, reported revenues were down 2% to £1.97bn, when it published results at the beginning of August. Ernst & Young and KPMG are still to report results for 2008-09.

PwC's reported net revenues (those before client disbursements) have risen 1% to £1.98bn.

PwC's advisory business grew by 5% to £737m, while assurance saw a drop in turnover of 1%, to £861m, as did tax but by the slightly larger margin of 4% to £650m.

The firm's UK chairman Ian Powell said:"This year has been one of general economic turmoil and against this backdrop our results represent a solid financial performance as we held our nerve and stayed close to the market and our clients."

Profits per partner fell to £777,000, down 3%, a and Powell earned £3.3m for the year, against £5.2m for Deloitte's chief executive John Connolly.

Powell also issued warning. "The outlook in the Uk remains uncertain in an environment where consumer confidence remains fragile and business investment slow. Business and government need to work hard to ensure that the attractiveness of the UK is maintained."

He added that PwC would continue to make long-term investments.

In the annual report Powell says: "We believe it is vital to accelerate our investment ot ensure we come out of this recession even stronger than we came into it.

"One such area of startegic investment and future growth opportunity is sustainability, particularly in the financial services sector, as it seeks to rebuild trust and confidence."

During the year PWC bought Sustainable Finance Limited, the consultancy built and run by Leo Johnson, brother of the mayor of London, Boris Johnson.

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Deloitte sees revenues fall in tough market