PracticeConsultingKPMG breaks £ 1bn barrier.

KPMG breaks £ 1bn barrier.

Electronic commerce has helped push KPMG’s fees to record levels, breaking through the £ 1bn barrier for the first time. Releasing results for the year to 30 September 1999 last month, the firm earned total fees of £ 1,038m and said consultancy, including work on e-commerce, was the driving force behind a 20% growth on last year. Alan Reid, finance partner at KPMG UK, said: ‘We focused on electronic commerce three to four years ago. If you talk to analysts they’ll tell you we are now the market leaders.’ He added: ‘We are now identifying what’s going to be the next big thing. In consultancy you can never relax.’ The company’s results, which also saw a 35% increase in distributable profit to £ 242m, also led to speculation that Mike Rake, the UK senior partner, is now the highest paid accountant in Britain with an income of £ 1.5m. But with Ernst & Young, the only other firm to reveal details of partners’ pay, KPMG pointed out rumours of Rake’s earning status were impossible to confirm. Consulting income for the firm grew by 30% on the previous year after repositioning to take advantage of the growing interest in e-commerce. Over the last three years, fees from consulting have nearly doubled from £ 144m in 1997 to £ 282m in 1999. The average level of partner pay increased by 28% to £ 391,000. Globally the firm also had a good year with fees up 17% to US $12.1bn (£ 7.5bn).

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

3m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

9m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

10m Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

11m Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

11m Stephanie Wix, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

10m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

10m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

10m Kevin Reed, Writer