KPMG delays results in face of ‘significant uncertainty’

KPMG has become the second of the Big Four to delay publication of its annual results and details of partners’ pay until it has a clearer view of the impact of Covid-19

The firm’s results for the year ending in September, due out in December, will not now appear until the New Year.

A KPMG UK spokesperson said: ‘Our business remains resilient and we are focused on advising our clients as they respond to the demands of Covid-19 and adapt their business models for growth.

‘However, significant uncertainty remains about the future performance of the UK economy and in line with other businesses we are taking the prudent step to assess our first quarter's results before we decide year-end reward.’

Last year’s results saw KPMG UK’s revenues increase by 3% from £2.34bn to £2.4bn, as the firm went through a comprehensive overhaul of its audit practice in the wake of harsh criticism from the audit regulator, notably over its auditing of collapsed outsourcer Carillion.

Profits fell from £356m to £307m, and it remains the smallest of the Big Four.

Partner pay dropped by 7% to £640,000, compared to £690,000 the previous year.

Despite the delay, KPMG has confirmed it will be promoting over 900 staff and partners right across the business.

In mid-August PwC revealed it was not planning to publish its full results, including profits and partner pay, until January next year, as it grapples with the impact of the pandemic on its business.

So far only Deloitte has published its financial results for the year.  These showed revenues of  £4.31bn,  up 9.1% overall for the year ended 31 May 2020, from £3.95bn in the previous year.

However, the firm said revenues in April and May 2020 were significantly impacted by Covid-19, with growth dropping to around 2%.

Distributable profit for the year ended 31 May 2020 was £518m, down 16% from £617m in the prior year, making average profit per equity partner £731,000, compared with £882,000 previously.

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