Profit this year was £935m and the average distributable profit for the firm’s 915 partners rose to £712,000, 9% more than the previous year’s £652,000.  In contrast, the 2017 figure marked an 8% decrease on the year before, and there was also a drop in 2016.

Assurance revenues increased by 3% to £1.334bn, consulting revenues were up by 1% at £778m; deals grew by 10% to £711m; and the tax practice, which includes specialists in areas such as immigration, legal services and pensions, experienced growth of 7% to achieve £941m. 

PwC also reported its Middle East practice grew by 15.7% in US dollar terms as client demand remained strong.

Kevin Ellis, PwC UK chairman and senior partner, said: ‘Despite uncertainty over Brexit, all four of our business divisions grew this year, with high demand for technology-related services, including cyber, data analytics and GDPR. Twenty-nine percent of the firm’s revenues came from inbound - organisations headquartered outside the UK - highlighting the importance of the UK as a global business hub.

‘Momentum in our business is good, driven by a strong deals market and demand for technology-driven business expertise, as we see organisations turn to us to help them transform their business models, many in response to digital disruption.’

Ellis referenced the increased scrutiny of the audit profession over the year, which saw PwC settle two Financial Reporting Council investigations (BHS and Tenon).

‘Our goal is always to deliver work of the highest calibre. When we get things wrong we put our hands up, learn the necessary lessons and improve our processes. Audit remains a fundamental part of the firm and the commitment to continuously improve audit quality is at the forefront of our strategy,’ he said.

More than 104,000 people applied for a job with PwC and new joiners included 1,297 graduates and school leavers and 2,144 experienced professionals. The firm said it is committed to encouraging greater social mobility, noting that 46% of new hires were women and 29% were BAME, while 60% of new graduate roles and 78% of school leaver roles were outside London.

PwC has introduced an innovative flexible talent network to open up new opportunities for people who do not want to work a traditional work patterns, banned all-male shortlists and expanded its paid work experience opportunities.

PwC UK’s mean gender pay gap under the government’s regulatory reporting requirement is 12.2%, down from 13.7% in 2017, while the mean gender pay gap including partners for 2018 is 43.2%, down from 43.8% in 2017. The mean BAME pay gap including partners for 2018 is 35.7%, down from 35.9% in 2017.

For the fourth consecutive year, PwC published a digital annual report, saying that by analysing readership data for r previous reports it had learned what people are most interested in about the firm and provided more detail on these areas.

PwC’s annual report, Leading in Changing Times: Working Together, is here.

Report by Pat Sweet