Average Profit per Partner for PwC UK is £716,000

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PricewaterhouseCoopers LLP has reported 11% growth in UK turnover to £2 billion for the financial year to 30 June 2006, confirming the firm’s clear market leading position. Turnover has now grown by 25% over the last two years, with growth in each of those years of £200 million. Underlying operating profits grew 24% to £577 million, achieved through a combination of increased turnover and continued tight control of operating costs. Partner numbers rose by 5% to 793 partners and average profit per partner was up 17% to £716,000.

The firm’s Tax practice recorded strong growth of 15%, reflecting a very clear focus on its chosen markets. There was strong demand for Human Resource Services, particularly pensions and actuarial advice, which grew 20%. There was also good growth in the Assurance business of 11%, notwithstanding a reduction in the volume of advice required on International Financial Reporting Standards and Sarbanes-Oxley compared with the previous year. Transactions Services activity was at record levels and grew very strongly at 27%. Advisory, up 8% overall, enjoyed significant gains, in particular within Performance Improvement Consulting, which saw an 18% rise in turnover. Corporate Finance grew 13% and there was a small increase in turnover (3%) from Business Recovery Services, a strong performance in the context of the benign UK economy and the counter cyclical nature of that business.

The firm’s annual report, just published, also reviews PricewaterhouseCoopers performance in non-financial terms. Highlights include:

* named the UK’s number one graduate employer for the third consecutive year

* ranked fourth out of all UK companies in the Business in the Community Corporate Responsibility Index

* launched the ground-breaking PwC Business Diploma in conjunction with the London Business School Centre for Management Development

* recruited over 1,000 students and 1,300 experienced staff during the year

* ranked top ‘big company’ training and development organisation

* 96% of PricewaterhouseCoopers people say they are proud to be associated with the firm.

Kieran Poynter, Chairman, PricewaterhouseCoopers LLP said:

“It is great to have reached £2 billion of turnover, but more important for me is the sustained growth and achievement in all aspects of our business. Leadership in our marketplace, continued strong growth and recognition of the firm’s corporate responsibility and great place to work agendas were matched by another year of record financial results. We have real momentum and are seeing an increasing differentiation between ourselves and our competitors.

“In a buoyant marketplace for professional services we performed strongly across the board. Our Assurance business has performed well at the same time as putting a major focus on enhancing quality and regulatory compliance. Over 40,000 hours were devoted by our partners and staff across the firm to mandatory regulatory training. As IFRS came into force for the first time this year it has been a challenge for our clients and our profession to interpret IFRS consistently.

“I am very pleased with our Tax business which has recorded a second year of strong growth on the back of a clear market focus which has resulted in many more clients buying our services. And we have seen record demand for our Human Resources services as HR issues, particularly pensions, have risen up the boardroom agenda.

“It was also good to see our Performance Improvement Consulting services benefiting from increased market awareness, a wide range of project wins and the continued recruitment and development of high quality, specialist partners and staff.

“In the middle market, the largest single component of our client base, we are enjoying clear leadership.

“We were pleased to pay bonuses of £68m, 31% higher than the previous year, to our staff to recognise their invaluable contribution to our success. We have also committed £140m of additional funding to eliminate the staff pension fund deficits over the next three years.

“I was particularly pleased that the firm was voted the UK’s number one graduate employer for the third consecutive year and that we were awarded The Sunday Times ‘Best Big Company Training and Development Organisation’. And again we achieved the top corporate responsibility ranking for a professional services firm.

“Three years ago, just over one third of the firm’s turnover came from non-audit clients and now, following a strategic refocussing, our turnover derives evenly from audit and non-audit clients. Our adherence to a simple winning strategy of leading through quality in each of our chosen markets and being a great place to work for all our people is paying off. I look forward to us building further on our achievements in the year ahead.”

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