Accountants beat tough times with huge effort

Dec 23 2009 by Peter McCusker, The Journal

THE head of one of the big four accountancy firms in the region has praised staff after they matched last year’s revenue performance with the growing restructuring division boosting its turnover by 60%.

KPMG Europe announced revenues of £3.1bn of which the UK firm represented £1.68bn, and its five offices across the North – Newcastle, Leeds, Manchester, Liverpool and Preston – matching last year’s turnover of £180m.

Newcastle office senior partner, Mick Thompson said: “I am pleased that, throughout an exceptionally challenging financial year, our five offices across the North have generated turnover of £180m. ”

The Newcastle office has seen the restructuring team double in size and grow its turnover by 60%, with 30% of its work relating to company turnarounds rather than insolvency.

Its public sector audit team won the external audit of Northumbria University, which means KPMG now works with all the universities in the North East.

Mr Thompson said: “Tax had a strong year in which the office generated turnover of £6m and invested in senior resource, with the appointment of associate partner Dean Harris and property specialist, Matt Sharpe, to the Newcastle office

The office was named Branch of the Year at the North East Accountancy Awards and dominated the North East Dealmaker awards by claiming four titles, after the pan-Northern team completed 17 deals during the year including the deal of the year; sale of Burnopfield drug firm Quantum Specials.

Mr Thompson predicts 2010 will be a year in which businesses will face the challenges and opportunities of a shallow economic uplift.

He said: “The downward economic slope we have been on has recently levelled off and I expect 2010 to offer us a continuation of this more stable, but still pretty downbeat, economic environment with consumer debt and uncertainty preventing a strong spending-led recovery, while the scale of the public spending cuts on the cards will temper private sector growth.

“The necessity for public sector organisations to radically reduce costs and improve efficiency means the skills and experience of our public sector advisory and restructuring teams are in demand.

“In particular I foresee local government and health as sectors of focus.

“Guiding clients as they make decisions that are critical to survival in the short term and nurturing sustainable growth will be at the heart of our agenda.

“I expect our restructuring team’s advice relating to cash management and working capital requirements will continue to be in demand.”