PKF's partner profits fall as downturn takes toll
Profits and revenue fall at PKF, hitting partners distributions
AVERAGE PARTNERS’ take-home pay dropped at PKF during the past financial year, as tough trading conditions took their toll.
The number of partners fell in 2012 to 70, from 75 a year earlier. With revenues and profits falling, the average profit per member was £188,000, compared to £207,600 in 2011.
The firm, headed by senior partner Richard Bint, paid out its largest profit share entitlement of £570,000 to one member – up from £485,000 a year earlier.
PKF, which has dropped to 12th from tenth in the Accountancy Age Top 50, saw revenues fall to £103m from £108m. Profits fell to £13.6m from £16.2m.
“This country is still in an extended downturn and this continues to have a significant effect on the accountancy and business advisory sector,” the firm said in its accounts filing.
Assurance and advisory revenues held firm at £45.7m, while tax and financial planning dipped to £21.7m from £22.4m. Management consulting fell £1.5m to £10.7m; corporate recovery fell a similar amount to £10.7m; and corporate finance & forensic fell £900,000 to £8.5m.
Its pension deficit grew in the year to £3.8m, from £500,000 a year earlier. The firm put the increased deficit down to a decrease in the market value for the assets, as well as changes in the assumptions underlying the liabilities. It contributed £99,000 to the defined benefit scheme during 2012, and its actuary has advised PKF to make minimum contributions of £93,000 over the next six years.