The report was met with some surprise by UK firm insiders who said that since the merger 18 months ago there was every indication that the firm has made significant revenue gains through dramatic growth since 1 July 1998.
Under the UK partnership structure, the firm makes an annual cash call on management to enable their shareholdings to remain linked to inflation.A spokesman said: ‘There will be no cash call in the UK other than on a purely routine annual basis.’
The merger costs have now been absorbed by the firm and are a thing of the past, according to insiders. PwC is now benefitting from the cost savings to be made by having a single network of offices and systems.
But the firm is already re-engineering itself to compete in the thriving sectors of e-business and technology and a US cash call may have been prompted by a potential takeover target.
PwC issued funding demand to US partners and admits merger costs have been higher than expected