Legal services income at KPMG grew by just 3% last year as overall profits fell by 14%, the Big Four firm announced today. 

Figures for the financial year to 30 September 2019 show profits falling to £307m from £356m, while group revenue crept up by 3% from £2.34bn to £2.4bn. The firm’s tax, pensions and legal practice also grew by just 3%, which KPMG attributed to geopolitical uncertainty and widespread regulatory change.

Bill Michael, UK chairman and senior partner, said: ‘We are creating a business that stands ready for the fundamental changes we expect to see over the next few years, both from the reforms necessary to rebuild trust in our sector and as we pivot our business to meet the changing nature of the work we are doing for our clients.

‘Our advisory business is increasingly winning long-term, multi-year contracts that deal directly with the most challenging and complex areas of our clients' businesses and require significant up-front investment on our part. We are winning these mandates by combining content, expertise and understanding from right across our firm. Our firm now has a strong base from which to capitalise on these opportunities.’

Average partner distribution for 2019 fell to £640,000 from £690,000, a 7% decrease, while the chairman’s earnings stood at £1.9m.