PwC turns to consultancy growth

PricewaterhouseCoopers, the UK’s largest
accounting firm, is eyeing consulting work as a key growth area over the next
two years.

Last week the Big Four firm delivered a £200m
increase in turnover, which reached £1.78bn. However, it warned that half of
this growth was a one-off spike as a result of work on regulation – principally
driven by international financial reporting standards and Sarbanes-Oxley

PwC expects just £50m of this extra turnover to provide a
steady income stream. But PwC chairman Kieran Poynter suggested that consulting
work was one of the areas the firm was developing to sustain growth as the IFRS
and Sarbox bonanza tailed off.

Performance consulting income at PwC rose by
28% during the 2005 financial year, and the firm has recruited eight new
partners from consulting backgrounds to support an anticipated expansion of
consulting work.

‘We do not anticipate that performance
consulting will grow to the same scale as our other businesses, but we aim to
grow it into a good-sized business over the next two years,’ said

Further indication of the value of consulting
to PwC was the 8% growth delivered by its tax arm, which climbed from £478m in
2004 to £514m.

‘Tax includes an element of HR consulting on
rewards and share option schemes, which are both tax-related,’ said

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