M&A work boosts KPMG
'Big four' accountancy firm KPMG has hailed its performance in the Midlands with 11 per cent growth.
Its regional chairman Steve Hollis told Insider there is potential for big deals in the Midlands this year if credit is available.
Hollis also revealed that the firm is looking to add between 50 to 100 new staff in the Midlands along with 60 incoming graduates.
Nationally, KPMG reported a 7 per cent rise in annual revenues to £1.7bn although profits dipped by 5 per cent. Overall profits fell from £416m to £396m. UK staff numbers increased from 9,464 to 10,150.
Hollis, who is also deputy chairman of the Birmingham and Solihull Local Enterprise Partnership (LEP), said of the last year: "We've seen lots of opportunities but not in the areas seen three or four years ago. We've done rather well in the M&A market where we've had more than our fair share."
Looking ahead, he said: "There's lots of potential for M&A if there's some credit in the system.
"I think there's interesting things happening in the supply chain where they are getting into a position they can price their goods at the right price to OEMs (original equipment manufacturers). Iconic brands will spur the confidence for companies to go forward."
He thought the Midlands could excel in specialty areas such as life sciences and welcomed developments such as the Birmingham New Street Station project in Birmingham and high-speed rail.
Hollis said he thought business had been "generally tough" and it is set to be continually difficult for retailers unless they work on 'click and brick' strategies of combining online sales with high street business. He added that his main highlight of the year was how the company's specialists had worked "effectively together".
KPMG, which has offices in Birmingham, Leicester and Nottingham in the region, revealed that its risk consulting division was a major driver for growth, with revenues up 43 per cent to £226m in the year to 30 September 2011.
Tax was up 12 per cent to £392m and management consulting was up 11 per cent to £255m.
