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Growth in tax services coupled with some big name audit appointments is behind KPMG’s revenue spike, according to boss Gary Wingrove.
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Big four boss credits high-profile appointments, tax arm for FY18 results
10 August 2018
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The big four firm has announced a 9.2 per cent revenue growth to $1.64 billion for the 12 months to 30 June 2018, up from $1.5 billion recorded last year.
Mr Wingrove said the firm’s results were down to its management consulting business, which continued to be its fastest-growing service, in line with demand from clients for customer experience, business transformation, and people and culture advisory services.
Mr Wingrove also attributed the growth to KPMG’s appointment as the global external auditor of Rio Tinto, reappointment as auditor of Suncorp, and reappointment as contract audit partner for the external audit of the RBA for the Australian National Audit Office (ANAO).
“We’ve had another very pleasing year, with the firm growing strongly over the last five years as we’ve transformed our business,” said Mr Wingrove.
“We’ve effectively added 50 per cent to the top line during this five year period, with strong bottom line growth also allowing us to fund further investments.”
KPMG’s tax practice also registered solid growth, with Mr Wingrove pointing to demand for international tax, board advisory and tax transformation services.
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Acquisitions also played a role in its results, with its expansion into Western Sydney through YCG Accountants, and acquisition of customer experience innovation consultancy, UDKU highlighted by Mr Wingrove.
KPMG recently confirmed it had appointed 78 new partners in 2018, up from 62 in 2017.
As of 30 June, 25.5 per cent of the firm’s 553 partners are female, in line with its target of 30 per cent by December 2020.
Over the next 12 months, KPMG will be looking at targeting client demand for technology services.
“Client appetite for innovation and data-driven technologies, including AI, IoT and blockchain, is increasing unabated – in fact we’ve seen demand here doubling in the past 12 months,” said Mr Wingrove.
“There has been a real shift in the marketplace from experimentation to implementation, driving significant demand for these services.
“In addition to doubling in revenue in FY18 we have a strong pipeline of demand for finance, risk and tax services delivered under a managed service arrangement.”
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