PwC’s 1,036 UK-based partners received an average of £862,000 in profits for the year ending June. This is down from £906,000 a decade ago, when Britain’s largest auditor invested in its business. Total revenue (which includes UK, Middle East, and Channel Island businesses) increased by 9 percent to £6.3 billion. Profit before tax, however, fell by 8.5% to £1.3 billion. In the UK, revenue growth was 3 percent.
PwC has thousands of consultants who advise on tax, mergers and purchases and technology. Marco Amitrano, a senior executive at Amitrano, said that core services like tax and audit were resilient in the past year
Marco Amitrano is PwC’s new senior partner, a former head of markets and clients. He was elected to the position in April, replacing Kevin Ellis, after eight years. Amitrano said that the firm “achieved a growth in a difficult UK market, while investing in technology and skills which will help our customers evolve, improve the way our people work and shape the future”. He said that core services such as audit and tax were especially resilient.
The audit revenues increased by 10% to £1.5 billion. Tax work was up 4% to £1.3 billion. And consulting revenues increased by 18% to £2 billion. This is largely due to infrastructure projects in the Middle East in contrast to the tougher UK market. Risk revenues dropped 1 percent to £539 millions. PwC reported a 5 percent increase in revenue from its deals, which topped £1 billion. “Clients wanted forward-looking assistance,” PwC said.
PwC invested more than £100,000,000 in technology, as well as “other strategic priority”. PwC signed a contract with OpenAI in May, making it the biggest user and first reseller of ChatGPT. The firm also created a GenAI platform “tailored” for its employees.
Amitrano joined PwC in 1992 as a recent graduate. He said: “Different companies will have different levers of growth — ours includes expanding in-person cooperation, new skill training, and more rapid technology adoption.” After the pandemic, demand for consultancy services grew, but Big Four clients’ spending dropped due to an uncertain economy. Some firms were left overstaffed, which led to a wave job cuts. PwC cut more than 500 employees in the last few months.
The group’s staff costs increased 17.3 percent to £3.3 billion. This includes employment termination costs that grew from £23 millions a year ago to £69 million. The average number of employees per group has risen to over 36,000, up from 32,600. PwC has continued to invest in regional offices, including the opening of a new Bradford office.
Amitrano was chosen by the partners of the UK firm to lead it from a shortlist that included only women. She said: “While UK’s economy won’t change over night, we have seen more optimism in the businesses we talk to than we have for some time.”
He said: “The UK’s professional services sector will continue to drive growth in the future.”
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