KPMG Australia recently reported their financial results. According to KPMG they were able to achieve growth of 7% in the latest fiscal year.They were able to achieve revenues of $1.905 billion Fiscal Year 2020.
They were reportedly on track to record 13% growth up until February of 2020.
Gary Winegrove is the CEO of KPMG Australia and he had the following things to say about the financial results.
“We’ve had a good financial year, all things considered, and I’m proud of what we’ve achieved working closely together as a firm, and continuously supporting our clients. I thank our people and partners for their resilience and unwavering efforts in delivering this hard won, and pleasing result.”
“As the health and economic impacts of the pandemic deepened, it became inevitable we would fall well short of the strong growth projections set at the start of the year. We had invested quite heavily in the first half to deliver that growth, which has now had a flow-through negative impact on profit.
“By acting swiftly and decisively early in the pandemic, we have protected the underlying health of the firm. That challenge ahead is for this to continue,” said Gary.
Alison Kitchen, KPMG chairman had the following statements about KPMG Australia’s results.
The Board considers that Gary and his team have done an excellent job in deeply challenging circumstances. They have kept us in good financial stead, while delivering balanced and thoughtful outcomes for our people, clients and partners.
KPMG Australia Revenue Growth Analysis
Now let’s take a deeper dive into the numbers released by KPMG
Audit had a 9 percent growth rate. This was due to a focus on enhancing audit quality according to KPMG. Risk consulting was also a good performer after the Royal Commission.
Deals tax and legal revenue was up about 8.1% for the past fiscal year. Much of the growth was due to infrastructure advisory, international tax and the legal group.
Enterprise revenue growth was up 5.8 percent year over year.
Management consulting was up 4.6%.
Lastly their strategy group performed the best out of all divisions. The growth of the strategy group was up 13.5% in the past fiscal year.
Other Items In The KPMG Australia Release
This is where KPMG Australia spoke about their cost cutting measures that they took as it relates to COVID 19. They stated that they laid 200 people off. However, they called the lay offs redundancies instead of layoffs. KPMG also forced their employees to take a 20% pay cut even though they made it seem optional. These pay cuts took place from May 2020 until August 2020. KPMG said that they will try to repay some of the pay reductions. People will begin receiving 100% of their base pay starting in September 2020.
They also delayed all promotions until January 2021.
Graduate hires were about the same as 2019 with 600 new hires. It appears that new hire jobs at KPMG Australia are pretty good.
KPMG also spoke about their inclusion targets. They achieved their women partner target of 30%. They actually overachieved because they now have 31.2 percent of partners that are women. They set this goal in 2015.
They did not mention how they are doing in the culturally diverse category, but they did state a goal that they have in that area. They seek to have 20% culturally diverse partners by 2025.
KPMG Australia also spoke about their initiatives in climate change and human rights. Australia has a modern slavery act that they have to comply with. I’m not sure how any company meets these standards. They admit that the Asia Pacific region is the toughest region to stay compliant in. How can a big 4 accounting firm speak about modern slavery when they have a production quota around the world. Additionally, many of the largest companies in the world use slave labor in the Asia pacific region to make their products. I’m not sure what this regulation or statement from KPMG is supposed to do other than virtue signal. It’s also subjective as to what you consider slave labor.
Lastly KPMG mentioned their charity work. In Australia, KPMG employees volunteered over 44,000 hours of their time. This is pretty consistent with what all the big 4 firms do. It is important to volunteer while you work for the big 4. It is becoming a more important part of the job. They said they also conducted 200 pro-bono engagements including work for the Suicide Prevention Australia.