KPMG Reports Robust Financial Performance in First Year Following UK-Swiss Merger
Big Four professional services giant KPMG has announced impressive financial results for its inaugural year following the combination of its UK and Swiss operations. The firm reported substantial revenue growth and increased profitability, marking a successful first chapter for the merged entity.
Strong Financial Metrics Demonstrate Merger Success
For the year ended 30 September 2025, KPMG UK/Swiss group achieved revenue of £3.6 billion, representing significant growth from the previous year's £2.99 billion. This performance follows the formal merger of the UK and Swiss businesses on 1 October 2024, creating one of the largest professional services operations in Europe.
The firm's profit before tax reached £576 million, a substantial increase from the £404 million recorded in 2024. This financial improvement was achieved through what the company describes as "careful cost management in response to the economic cycle", demonstrating effective operational control during a period of market uncertainty.
Division Performance Shows Mixed Results
Different business divisions within KPMG UK/Swiss experienced varying levels of performance:
- The audit business grew by 5 per cent, maintaining steady performance in a competitive market
- Tax and legal services increased sales by 6 per cent, driven primarily by client demand for advice on complex regulatory changes
- The advisory division saw a 3 per cent decrease, reflecting what the company describes as "a difficult consulting and deals trading environment"
The firm's partnership benefited significantly from these results, with average profit per partner increasing by 11 per cent to reach £880,000.
Merger Creates Enhanced Opportunities for Staff
The combination of KPMG's UK and Swiss operations brought together approximately 16,000 UK employees with 2,600 Swiss staff, creating a workforce of nearly 18,600 professionals. The merger received overwhelming support from partners, who voted strongly in favour of the combination in May 2024.
As a result of the successful integration, KPMG increased its colleague bonus spend across the group by 18 per cent and supported more promotions than in previous years. The firm also launched a new in-country exchange programme between the UK and Switzerland, designed to create more diverse and international career paths for employees.
Leadership Perspective on Strategic Direction
Jon Holt, group chief executive and UK senior partner, commented on the results, stating: "The merger of KPMG UK and Switzerland was a defining moment for our firm and our first year has brought new and exciting opportunities for our clients, our people and the communities we work in."
He further explained the firm's strategic approach: "By combining our ongoing investment in new technologies with the expertise of our people, we are well-positioned to help our clients navigate uncertainty, transform with AI, and grow successfully." Holt emphasised that the professional services industry remains central to the country's economic strength.
Industry Context and Future Developments
The results come as other Big Four firms also report their financial performance:
- PwC UK showed steady financial recovery after generating £6.35 billion in revenue
- Deloitte's profit increased by four per cent to £789 million
- EY UK experienced a bounce back, with fee income growing by 2 per cent to £3.78 billion
Looking ahead, KPMG UK/Swiss will hold an internal election for its next global chair and CEO, with current global chair Bill Thomas set to finish his term later this year. The firm continues to focus on managing costs given what it describes as "ongoing headwinds and industry-wide lower levels of attrition", maintaining a cautious approach to future market conditions while building on the successful integration of its UK and Swiss operations.
