PwC continues to hire despite profits fall

PricewaterhouseCoopers (PwC) today announced plans to create 800 new jobs despite a fall in profits during a “tough year” for trading.

The professional services firm posted profits before tax of £665m (€797m) in the year to June, down 3% from £688m (€825m), while the average payout for each of its 820 partners was down 2% to £759,000 (€910,000).

The results show PwC’s turnover rose 4% to £2.33bn (€2.79bn), outstripping rival Deloitte, where revenues recently fell 1% to £1.95bn (€2.33bn).

However the average return for partners at Deloitte was higher at £873,000 (€1.04m).

PwC put the drop in profits down to heavy investment during the year, including the recruitment of 1,750 staff and 57 new partners, and the building of a new eco-friendly office in London.

Ian Powell, PwC chairman, said the company was right to “hold its nerve” and continue to invest, but warned that competition in the UK economy still remained challenging and urged the Government to ensure that the country was seen as “open for business”.

He said: “The government is clearly addressing the debt burden and making spending cuts is unavoidable, but the emphasis must be on investing to accelerate business growth in the interests of the UK’s long-term economic health.”