PwC sees a strong upturn, but mixed messages

The results are an improvement on last year when PwC’s Yorkshire operations suffered a five per cent fall in turnover. The group declined to give a figure for this year’s increase.

Roger Marsh, senior partner in the Leeds office, said: “Our Yorkshire business is growing. In a challenging market we’ve seen a marked upturn in turnover.

“We’ve increased market share and our focus has been directed towards key segments of the economy such as financial services, the Government sector and corporate finance.”

He said that while business in Yorkshire and the Humber area has picked up, there are mixed messages coming from the region.

“There is a lot of investment in the Trinity Leeds retail scheme and the Leeds Arena, which shows increased confidence, but there are more NEETs (young people not in education, employment or training) in Leeds than anywhere else in the country,” said Mr Marsh.

“It doesn’t compute. Whether it’s a lack of opportunity, ambition, encouragement or the education system, I don’t know.

“On one hand people are feeling more confident, but we have pockets of negativity.”

In the year to June 30, the Yorkshire office’s notable deals included advising Leeds-based Symington’s management team on a secondary buyout, backed by Intermediate Capital Group.

It also advised Leeds-based Andrew Page on the acquisition of Camberley Auto Factors.

Mr Marsh said that while business has been brisk across the private sector, PwC has also made “real progress” in the public sector.

“At least half the universities across the region are clients of the firm. Even in this challenging market we’ve made progress.

“The key message is business is noticeably better than 12 months ago. There’s improving deal interest.”

Ian Green, North East chairman at PwC, said the firm is committed to continued investment in Yorkshire.

“It’s tough out there, but I’m delighted that we’ve grown,” he said. “We have got to push things forward. People always need help and support in times of change.”

Across the UK as a whole, PwC reported a seven per cent increase in revenue to £2.62bn for the year to the end of June 2012, up from £2.46bn in the previous year.

The firm recruited 2,300 people over the course of the year, including more than 1,200 graduates and 100 school leavers, who joined professional training programmes. Across the North East, it recruited 81 graduates, including 47 in Leeds

PwC said its Assurance practice reported revenue growth of six per cent to £963m, helped by audit wins including Aviva, Dubai World, Genel Energy and Yule Catto.

Its Consulting practice recorded a 13 per cent increase in revenue to £438m.

The Deals practice reported eight per cent growth in revenue to £561m, while Tax grew two per cent to £659m.

Overall profits rose 11 per cent to £727m.

Mr Green said: “While the short-term economic environment remains tough, I am confident in the North East and Yorkshire longer-term prospects.

“Companies are holding their nerve and locally we’re seeing growth in the technology and financial services sectors and in businesses who are expanding their markets by exporting.

“We plan to maintain our record recruitment levels in the coming year, particularly with graduates and apprentices.”

PwC claims to be the only big professional services firm that has a foothold in every corner of Yorkshire and the North East.

It employs more than 1,000 people in Yorkshire and the North East, including about 600 staff in Leeds, 100 in Sheffield and about 75 in Hull.

Mr Marsh said: “Despite the challenging economic circumstances, I remain impressed by the resilience, versatility, innovation and sheer grit of local businesses who continue to do well nationally and internationally.

“We see, first-hand, the entrepreneurial drive and ambition across the region, day in and day out. These businesses will continue to deliver growth, jobs and a positive outlook for our region while contributing meaningfully to UK GDP.”

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