KPMG UK chief lines up modest 2010 growth

KPMG Europe co-chair John Griffith-Jones

Modest growth could be around the corner for KPMG in the UK, after a tough 12
months.

Speaking to Accountancy Age after the release of
KPMG
Europe’s annual results, co-chair John Griffith-Jones predicted
that this year’s fall in revenues and profits should at least be “slightly
better” in 2010.

“It’s the most difficult year for setting targets, but I would expect
slightly better results, [in the] plus, but not necessarily by much,” said
Griffith-Jones.

KPMG UK posted £1.63bn in revenues for the year end to 30 September, a 1.6%
fall. Profits fell to £382m from £387m.

After suffering a 12% fall in tax revenues, Griffith-Jones said the service
line was set to hold firm with the rest of the business next year.

“We resized the practice, and are fine where we are, [it’s performance]
should be much more in line with the rest of the firm – it’s taken the pain.”

Government spending to drive efficiency and change could boost KPMG next
year, said Griffith-Jones, while there was also the potential for a pick-up in M
&A work.

“We have real value to add on the things that need to be done [in providing
government services].”

Investment has continued in other key areas in 2009, including a beefing-up
of its risk services line, and performance/IT.

However the firm would avoid moving into big ticket IT implementations, a
service that the firms have been criticised for in the past due to concerns over
conflicts of interest.

“We’re not going to be full-scale implementers, but target the space between
strategy and IT. Project design…We don’t have desk upon desk of programmers.”

Further reading:

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venues fall at KPMG UK and European parent