Insider Media Limited

The East Midlands offices of accountancy firm KPMG have helped the UK arm of the business achieve operational profit growth of 13 per cent in what regional chairman Steve Hollis described as “a fairly difficult year”. Speaking to Insider, Hollis warned that 2011 was going to be a tough 12 months, but said that the firm, which has premises in Leicester and Nottingham, would be “investing in new people” in each of its Midlands offices.

In its annual results, released this morning, KPMG said that its turnover from UK practices remained static at £1.6bn, while operating profits grew 13 per cent to £432m. UK profit per partner increased 10 per cent to £763,000.

The firm's advisory practice was its strongest performer, growing consulting revenues by 13.7 per cent to £229m and compliance revenues by 10.8 per cent to £397m. In October, it announced this would be a main focus for future growth, with an “ambitious” jobs drive to create 3,000 new positions in the UK over the next three years.

Hollis said that the recruitment drive in the Midlands had already begun, and would continue throughout 2011.

“Finding the best talent to work for us is one of our biggest challenges – but we have a huge recruitment drive planned for the next year, and are investing in the best people.”

Practices that fared less well during the past 12 months have been restructuring, audit and tax, with revenues falling 3.7 per cent, 5.6 per cent and 6.6 per cent respectively.

Hollis warned that although the proposed public sector cuts would have an effect on the firm in 2011, it would take several years before the cracks really begin to show.

“The public sector cuts are the elephant in the room at the moment”, he said. “Hopefully the pain of the job losses will be absorbed by the fact that they will be brought in through stages, and not all at once. I think that although next year will be tough, it will be the following years that the public will really feel the hit.”