KPMG UK profits on continuing operations fell by 21% to £212m, following its restructuring project to reduce the workforce, which involved asking 1,000 partners and staff to leave the firm.
‘Restructuring, redundancy and higher people costs have affected our level of profitability. But, following the sale of consulting, we now have one strong balance sheet – and we’re in good shape for the year ahead,’ said Mike Rake, UK chairman of KPMG LLP.
A one-off income from selling its consulting activity offsets its profit decline, causing overall UK profits to rise to £406m from £304m last year.
KPMG International on 2 December announced a revenue boost of 6.4% in Europe, but KPMG UK total revenues declined slightly to £1.018bn down from £1.023bn last year.
Revenue fell sharpest in corporate finance and forensic activities, but assurance and corporate recovery showed a modest growth. As a result, Rake believes KPMG UK performed well amidst ‘significant turmoil’ in the accountancy industry.
KPMG UK will publish a full annual report in January 2003.
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