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The revenues of KPMG’s UK business grew by double digits in its last financial year. According to the Big Four firm, revenues expanded by 16% in the 12 months leading to September 30 2022 – passing £2.7 billion.

The news represents a second year of growth for the firm – which has more than recovered from the slowdown it endured amid the UK’s Covid-19 lockdown. Reports then suggested that revenues declined from £2.39 billion to £2.30 billion.

But KPMG’s £2.72 billion haul for 2022 has rewarded executives’ continued belief in its “multidisciplinary model”, according to the firm’s UK leader. Much of the growth was on the back of fast-paced expansion in its consulting and M&A deals advisory divisions – supplementing its historic bread-and-butter of accounting work.

Chief Executive Jon Holt told business news site City A.M. that the firm’s performance was an indicator it is on the right track as a combined entity. Holt also rejected notions that the firm might follow EY in pursuing a global split. Instead, he doubled down on KPMG’s combined accounting and advisory model, which involves both arms working as a single unit – asserting his belief that it had been crucial in helping the firm “weather the ups and downs of the economic cycle.”

KPMG UK revenue 2022

“We’re not splitting up our business,” Holt added. “As a sector, auditors are facing a number of upward cost drivers including increased regulatory requirements, new standards and a range of inflationary pressures.”

Illustrating this, KPMG UK’s 2022 results show an uptick in pre-tax profits of 3%, in spite of these pressures. Driving forces behind this were KPMG’s M&A deals advisory arm posting sharp growth, with revenues increasing 24% to hit £443 million – even as M&A activity slowed around the world – while income from the firm’s consulting arm jumped by 22% to hit £811 million. Audit fees also rose, though, with KPMG enjoying a 10% increase to £695 million there, and income from its tax and legal business rising 13% to £455 million.

As a result, the average pay out given to KPMG’s 786 UK partners has been able to increase by 10% – hitting an estimated £757,000 each. The news sees KPMG make ground on its rivals PwC and Deloitte, who each gave handouts of more than £1 million in their most recent round of results.

The news comes as fellow Big Four competitor EY continues mooting a separation of its audit and advisory brands. In May 2022, the firm announced a strategic review to spin off its consulting business into a new entity. If approved, the move would mark the biggest shake-up in the accounting and consulting sector since the 2002 collapse of Arthur Andersen, which saw the ‘Big Five’ reduced to the ‘Big Four’.