Partner payouts rise 2% as profits up at PwC

Profits at PwC rose from £750m to £772m last year, while the firm’s partners enjoyed the biggest payout since 2010, according to the firm’s latest annual report.

PwC’s revenues for the year ended 30 June 2014 were up 5% at £2.81bn compared with £2.69bn the previous year.

The average distributable profit for each of the 874 partners was £722,000, up 2% from £711,000 in 2013.

The firm reported growth in each of its four business divisions, led by the assurance practice which was up by 6% to £1.02bn. 

PwC, which audits 40% of the FTSE 100, said it noted that ‘significant regulatory change’ led to an increase in listed company audit tenders, with wins at HSBC, Vodafone, British Land, Bunzl and Morrisons.

Tax revenue was up by 5% to £714m, deals by 3% to £580m, and consulting by 4% to £495m.

Ian Powell, chairman and senior partner of PwC UK, received a £3.6m, up from £3.3m in 2013, while the 13 members of the executive board shared out £21.5m.

He said the firm’s strong performance reflected ‘an improving economy, the growing confidence of our clients and the ongoing investment we have made in the firm over the past six years to create a responsible, profitable and well diversified business.’

Powell added that improvements in the UK economy was producing ‘significant growth potential’ in the UK regions, while the firm has also increased investment in Africa, Middle East and Central and Eastern Europe in response to clients activity.

However, he warned that while he was optimistic about the shorter term outlook for the UK economy, ‘there was no room for complacency’.

‘Government and business must work together to spread the message that the UK provides a compelling and stable environment to operate in. We are aware of some 100 overseas businesses looking to increase their footprint in the UK, but are equally aware that these companies look for relative political and regulatory certainty before they invest.’

Pat Sweet |Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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