PwC UK profit drops against backdrop of ‘political and economic upheaval’
PwC UK reported a drop in annual profit against what it said was “a backdrop of political and economic upheaval”.
The Big Four firm revealed its total group consolidated profit fell to £1.3bn for the financial year to 30 June, down from £1.5bn last year.
It said, however, the previous year included a “one-off gain” of £139m from the sale of the group’s global mobility practice.
Average distributable profit per UK partner dropped to £906,000, down from £920,000 the previous year.
But the firm took on more staff during the period, lifting its UK headcount, including partners, to more than 26,000 – up from around 24,500.
“Considering the sizeable investments we’ve made in our people and technology, partner profits beat our forecasts,” Kevin Ellis, chair and senior partner at PwC UK, said.
Total revenue increased 16 per cent to £5.8bn, with strong growth across all of its divisions.
Consulting revenues were up 30 percent, while expanded reporting requirements boosted client demand for its audit services, which increased by 19 per cent. It also highlighted major client wins, becoming auditor to Natwest from 2026, and being reappointed by HSBC.
Its tax and deals divisions recorded 19 per cent and 6 per cent revenue growth respectively, while its financial services business grew by 15 per cent.
“Against a backdrop of political and economic upheaval, our multidisciplinary business has chartered a strong course,” Ellis added.
The results come after the firm reportedly told staff to expect smaller salary increases and bonuses this year due to “challenging” market conditions.