KPMG LLP: Pace of digital innovation quickens; large companies struggle to keep up, says Harvey Nash CIO Survey in association with KPMG
Big data analytics jumps to No.1 in demand skill, big growth in CDO roles
Big data analytics jumps to No.1 in demand skill, big growth in CDO roles
UK retail sales decreased by 2.4% on a like-for-like basis from April 2014, when they had increased 4.2% on the preceding year. On a total basis, sales were down 1.3%, against a 5.7% rise in April 2014. Adjusted for the BRC-Nielsen Shop Price Index deflation, total growth was 0.6%.
Research from KPMG shows that the divergence between house prices and wages has grown so wide, that a first time buyer in London would need an annual wage of £76,971 to get onto the property ladder, with the actual average annual wage in the capital at just £27,999.
UK tech companies report that new business volumes rose at the slowest rate since mid-2013 due to uncertainty and delays with clients’ decision making ahead of the general election, according to the latest KPMG/Markit Tech Monitor UK survey.
HR leaders are facing a crisis of credibility among their senior peers, due to an overreliance on instinct when making decisions.
With the growing need to move the focus of healthcare to prevent illness and maintain wellbeing in order to contain healthcare costs, there is a multi-billion dollar nutraceuticals industry primed for rapid growth according to a new report, Nutraceuticals: The future of intelligent food, published by KPMG.
Report reveals divergent performance across the top five UK-based banks as the profitability at the two state-backed banks continued to rise, whereas it fell at the three global banks. Strengthening economic conditions sees loan impairment costs fall 72 per cent to £5.2bn. Encouragingly, four of the five banks have taken the significant step of including customer satisfaction information in their annual reports.
The Recruitment and Employment Confederation (REC) and KPMG Report on Jobs – published today – provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies.
Commenting on a judgment from the Court of Justice of the European Union ruling that France and Luxembourg cannot apply a reduced rate of VAT to the supply of electronic books, in contrast with paper books, Mike Camburn, indirect tax partner at KPMG in the UK, commented:
Commenting on the Q4 2014 M&A figures released today by the Office of National Statistics (ONS), Andrew Nicholson, head of M&A for KPMG in the UK, said:
By the end of 2016, spades will be in the ground in over 80 per cent of the projects in the UK Government Construction Pipeline, according to analysis published today by KPMG.
As the Airports Commission consultation closes on 'Increasing the UK's long-term aviation capacity', seeking views on the three shortlisted options for a new runway in the south east of England, KPMG’s Global Head of Aviation, James Stamp, highlights that UK needs to take action to defend and grow its competitive position. He said:
- More boards reallocating oversight duties as risk environment strains audit committee agendas
- Cyber security and the pace of technology change, risk management and operational risk, and regulatory compliance are the main issues that will require more attention in 2015 according to respondents in KPMG survey
- UK audit committee members look to risk adventurous, autonomous and detail thinkers to improve audit committee effectiveness, finds KPMG
- Potential whistle-blower turns blackmailer
- Number of victims up, as fraud cases rise
- Improving economy sees corporates rise up ‘victim list’
Will Wright and Paul Flint from KPMG were yesterday appointed joint administrators to PCS Brands Ltd, a manufacturing business which makes metal bake ware, cookware and wine racks together with the distribution of cutlery under the Viners Brand.
• But KPMG predicts a “race against the clock” for both governments and financial institutions to meet the ambitious timelines
• And KPMG warns that anyone with tax irregularities should act now to resolve them with the appropriate authorities
With the Westminster Energy, Environment and Transport Forum, today, discussing the Smart Meter Implementation Programme in the UK KPMG’s Alejandro Rivas-Vásquez argues that there are still important security risks that need to be addressed before any benefits of this new technology are truly realised.
• KPMG analysis of European Central Bank’s Asset Quality Review’s results reveal the true impact supporting non-performing exposures (NPEs) is having on shareholder value
• A staggering €96bn of Common Equity Tier 1 capital is tied-up supporting NPEs
• Bank management teams must focus on proactively managing NPEs and prepare for portfolio sales, as well as reviewing the profitability of their performing exposures
James Fox, director in the cyber security practice at KPMG in the UK, comments on the news that Tor users have been advised to check their computers for malware, following an announcement that the anonymising service has been hacked:
With forecasters predicting the warmest Halloween since records began, retailers are counting the cost of a potential stock overhang from the unseasonably mild weather, warns KPMG.
• Today’s publication of the Comprehensive Results reinforces the strength of the European banking sector and will be the catalyst that drives M&A in the European banking sector
• However European banks face significant challenge as the sector remains chronically unprofitable and must address their €879bn exposure to non-performing loans
• KPMG calls for banks to “get their house in order” and adapt to the European Central Bank’s Single Supervisory Mechanism, or risk further actions from the regulator
Richard Threlfall, KPMG’s UK Head of Infrastructure, Building and Construction comments on the HS2 phase 2 update by Executive Chairman David Higgins. Richard said:
John Leech, KPMG’s UK Head of Automotive, commented on the SMMT figures published today highlighting best year-to-date performance since 2008, producing 1,132,017 units – up 0.6 per cent. He said:
Multinational life sciences companies should review their organizational structures and perform scenario planning to assess the likely impacts of the OECD (Organisation for Economic Co-operation and Development) Action Plan on Base Erosion and Profit Shifting (BEPS), according to a new KPMG report released today.
• Advocate General’s Opinion in long-running “M&S” tax case appears to suggest that fundamental principle of freedom of establishment should be restricted, according to KPMG in the UK
In response to the launch of the new NHS Forward View, Andrew Hine, KPMG’s Head of UK Healthcare, welcomes the encouragement of local variation and clarity provided, rather than the historic one size fits all approach.
KPMG in the UK has announced the appointment of Neill Thomas as head of Corporate Finance and Andrew Nicholson as head of M&A.
Mark Thompson, senior manager in KPMG’s cyber security practice, comments on the news that Police are reportedly hacking into hundreds of people’s voicemails, text messages and emails without their knowledge. He says:
Mike Kelly, head of Living Wage at KPMG, comments on the State of the Nation 2014 report by the Social Mobility and Child Poverty Commission highlighting that the UK should commit to becoming a Living Wage nation by 2025. Mike said:
• New KPMG report predicts the pensions insurance buyout market will more than double by 2020
• As bulk annuity insurance continues to surge in popularity as a de-risking option, scheme and sponsors must take time to understand their options, says KPMG
• Over £2.5bn might have been saved since 2007 if schemes had timed the approach to market better, according to KPMG analysis
In response to the publication of the Lyons Review, Jan Crosby, UK Head of Housing at KPMG, commented:
Reacting to the publication, today, of the latest UK employment figures, which have seen unemployment levels fall by 154,000 to 1.97 million, Bernard Brown, partner and head of business services at KPMG, says:
• UK retail sales were down 2.1% on a like-for-like basis from September 2013, when they had increased 0.7% on the preceding year. On a total basis, sales were down 0.8%, against a 2.4% rise in September 2013. This is the weakest performance since December 2008 excluding Easter distortions.
• Clothing and Footwear were the worst performing categories in September, reporting record declines since April 2012 and March 2013, respectively.
• Over the last three months, Food showed a decline of 1.7% and reported its first twelve-month average decline in at least five years, at -0.2%. Non-Food reported growth of 3.0% over the three months to September 2014, underperforming its twelve-month average of 3.6%.
• Online sales of non-food products in the UK grew 8.2% in September versus a year earlier, when it had grown 13.4%. This was the lowest online growth since August 2013. The Non-Food online penetration rate was 17.5% in September, 1.3 percentage point higher than in September 2013.
• Online sales of Non-Food products in the UK grew 8.2% in September versus a year earlier, the lowest growth since July 2013. In September 2013, online sales rose by 13.4% over the previous year.
• In September, online sales represented 17.5% of total Non-Food sales of our Monitor, against 16.2% in September 2013. This is the highest penetration rate since February.
• Clothing and Footwear reported a record low performance since our monitor began in December 2012.
• Online sales contributed 1.4 percentage points to the growth of Non-Food total sales in September. The three-month average contribution of online to growth exceeded that of stores for the first time outside the Christmas period.
The joint administrators of New Store Europe UK Limited, the store interior, shop fitting and design company, have today announced a total of 231 redundancies.
Stephen Frost, KPMG’s head of diversity and inclusion, comments on the release of Business Disability Forum’s latest guide which focuses on handling difficult conversations. He highlights the importance of arming line managers with the appropriate tools to feel confident about having honest and open conversations with colleagues with disabilities.
• Business increases overall director numbers by 13 per cent
• Audit sees largest number of promotions
• Female directors make up a third of promotions
Sean Randall, Head of UK Stamp Taxes at KPMG, and Jon Meeten, Head of Tax in Scotland comment on the tax rates and tax bands proposed for the devolved stamp duty on land transactions in Scotland, land and buildings transaction tax (LBTT), to be introduced next April.
• European Parliament/Council approval process can now begin
• Level playing field of knowledge of the requirements
• Longer-term investment in higher quality securitisations permitted
Administrators Howard Smith and Jonny Marston of KPMG have secured the sale of the service, repairs and uninterruptible power supply (‘UPS’) divisions of Progress Plant (Yorkshire) Limited (‘Progress’) to Brimlow Limited, which trades as PowerPlant Services ('PPS'), in a deal that has saved 22 jobs.
UK consumers fear that technology is overtaking their lives, with many increasingly concerned about the pace of change they face, according to the latest KPMG survey. Results also highlight discomfort with the greater surveillance of everyday life and a cynicism about the need for connected devices.
• If the ‘Real Time Initiative’ on reporting employment tax data is to succeed, HMRC needs to be able to invest in its software and processing systems, says KPMG in the UK
• permanent placements rise at slowest rate in ten months
• growth in starting salaries moderates to four-month low
• temp pay rises at fastest pace in nearly seven years
Anthony Hess, principal advisor in KPMG’s cyber security team, comments on the UK government initiative to give lawyers and accountants free cyber security training. He said:
• PPF confirms new levy approach, relaxes approach on asset-backed contributions
• There will be winners and losers under the Experian model, with some schemes facing levy increases of over £100,000
• Trustees and sponsors must understand the changes to proactively manage future levies
KPMG today welcomed 32 new apprentices to its Business Support Academy scheme following a successful pilot involving 7 apprentices last year. After launching in London, the programme has been extended to offices across the UK, including Manchester, Leeds, Birmingham, Bristol and Glasgow.
With small businesses helping provide the driving force behind the current growth in the UK economy, a new index released today by the Federation of Small Businesses (FSB) and KPMG has identified the best and worst places for small business owners in London.
Mike Kelly, head of Living Wage at KPMG comments on the news that Business Secretary, Vince Cable, is set to announce plans to give the lowest-paid apprentices a £1.06 an hour pay rise at the Liberal Democrat conference. He said:
KPMG has announced the appointment of David Burlison as Global Head of Restructuring and Mark Firmin as UK Head of Restructuring.
KPMG LLP (U.S.) and KPMG LLP (UK) have acquired certain assets of Qubera Solutions (“Qubera”), a leading privately-held cybersecurity firm that provides identity and access management (“IAM”) services to Fortune 500 and Global 2000 companies.
KPMG International has won the prestigious 2014 International Accounting Bulletin (IAB) Award for Sustainable Firm of the Year for a third consecutive year.
Will Wright and Mark Orton from KPMG have been appointed joint administrators to New Store Europe UK Limited, the store interior, shop fitting and design company.
As the annual increase to the Minimum Wage takes effect today, Mike Kelly, head of Living Wage at KPMG, suggests that the rise will not be enough for many of Britain’s lowest paid and encourages companies to consider whether they can offer their staff a Living Wage.
Ingrid Waterfield, a director in KPMG’s People Powered Performance practice (P3), comments on news that, from today, employers can be compelled to conduct and publish equal pay audits if they are judged to have breached the equal pay provisions of the latest Equality Act.
• “ABS” licence is the first to be awarded on a “multi-disciplinary practice” basis and allows KPMG to extend its range of focussed integrated legal services
• Despite payments of £250m by social housing associations, the Social Housing Pension Scheme’s deficit is predicted to remain unchanged at £1bn at today’s triennial valuation
• Analysis by KPMG shows that, using median actuarial assumptions, the deficit could be as much as 40% higher than stated
• Housing associations need to pay more cash into the scheme to pay the deficit down – and must factor this into future budgets
• Building societies are core to UK housing market recovery, advancing over 25% of UK mortgages
• Sector enjoys strong reporting season and a confident outlook, as sector reserves hit an all time high of £13.7bn
• However the potential impact of a number of longer term challenges face the sector, including future hikes in the Bank of England base rate, leverage ratio and the availability of fresh capital
Paul Flint and Brian Green from KPMG’s Restructuring practice in Manchester have been appointed joint administrators to Caip Limited, a technical engineering business which provides services to the telecoms, renewable energy and construction sectors.
Howard Smith and Jonny Marston of KPMG were appointed Joint Administrators of Leeds Recycling Limited (“Leeds Recycling”) and Waste Recycling and Diversion Limited (“Diversion”) on 22 September 2014.
KPMG has announced the appointment of Sanjay Thakkar as head of its Transactions and Restructuring practice in the UK.
John Leech, KPMG’s UK Head of Automotive, commented on the SMMT figures published today highlighting a decrease in UK car production of 20% in August 2014.
• KPMG invites all their listed audit clients to include in their annual report broader qualitative commentary from the auditors
• Decision to extend offer to all listed audit clients follows positive response by audit committees, management and investor community to pioneering ‘pilot’ reports for three audit clients this year
KPMG, a Platinum level member of Oracle Partner Network (OPN) today announces a collaboration with Oracle to bring financial and tax business transformation expertise together with technology know-how, providing clients with cloud-based financial processing, analytics and reporting tools via the Oracle Cloud. The joint initiative will be known as ‘KPMG Powered Finance’.
• Many European countries already making changes
• Supply and demand for subcontractors and labour to come into balance is still a year off, according to KPMG
• Referendum acts as “precipitative force” in shift towards greater regional spending and planning powers
KPMG’s Real Estate team has won the Association of Real Estate Funds’ (AREF) Affiliate of the Year Award.
The private client team at KPMG in the UK was named Accountancy Team of the Year by “STEP”, the Society of Trust and Estate Practitioners, the worldwide professional association for practitioners dealing with family inheritance and succession planning, at the STEP awards on Wednesday 17 September.
3D printing, Internet of Things (IoT), and biotech/ healthcare IT are amongst the top five disruptive technologies predicted to change the way we work and live over the next three years, according to the 2014 KPMG Global Technology Innovation survey.
Reacting to the publication, today, of the latest UK employment figures, which have seen unemployment levels fall by 146,000 to 2.02 million, Bernard Brown, partner and head of business services at KPMG, says:
• Decision to leave today’s recommendations in draft is wise, given that 2015 actions are still to come, says KPMG
• Co-ordinated and consistent action required to implement recommendations effectively, according to KPMG
A2Dominion has announced today that it is launching its second unsecured retail-eligible bond. A KPMG team comprising Tim Metzgen, Marc Finer and Siobhan Murray is advising A2Dominion on the issue.
• Banks significantly reduced lending by over £364bn in the past five years; opening-up the loans market to shadow banking initiatives
• Banks must focus on increasing the return on equity to above their cost of capital by embedding stronger cultures, ethics and new technologies
• Window of opportunity for banking industry as performance in the UK economy makes way for growth and profitability
• demand for staff increases at fastest pace since April 1998
• growth of staff appointments remains marked, despite easing
• candidate shortages fuel strong pay growth
• Skills shortage in the capital
• Business expansion and recruitment plans on the up
Responding to the publication, today, of a Government-commissioned report into the horse meat scandal last year, Annette Barker, Forensic Director at KPMG, warned that unless organisations tackle weak links in their supply chain, they risk exposure to fraud and a repeat of the crisis.
Paul Flint and Brian Green from KPMG’s Restructuring practice in Manchester were appointed Joint Administrators of the following six companies on Tuesday 2 September 2014:
Reacting to news that a number of online businesses have recently been breached, opening access to customer data, Yiannis Chrysanthou, security researcher in KPMG’s cyber security team, suggests that instead of businesses blaming consumers for using weak passwords, they need to introduce multi-factor authentication. He explained:
NATO is set to ratify its new cyber defence policy so that any severe cyber attack on a NATO member could soon be considered tantamount to a traditional military attack and invoke Article V - the collective defence clause which considers an attack on one member an attack on all.
Commenting on the Airports Commission’s decision to reject the plan for a Thames estuary airport, Richard Threlfall, KPMG's UK head of infrastructure, building and construction, said:
KPMG Corporate Finance has announced today that it has acted for the shareholders on the £50 million management buy-out of Clifford Thames Group by LDC.
• KPMG calls for banks to take early proactive action to address capital needs likely to arise from Comprehensive Assessment and not wait until the results are published in late October
• Dealing with the results of the Asset Quality Review now will reduce the potential risk and pressure from Brisbane G20 summit in November
• Unique opportunity to present a strategy for long-term profitability underpinned by ECB’s “seal of approval” on bank balance sheets
KPMG has today called for the European Union’s financial services regulatory reform agenda to be re-evaluated to avoid a serious risk to businesses, jobs and economic growth.
• Newark Joiners Limited (in administration)
• Ferguson-Ailsa Limited (in administration)
Commenting on the publication of the Accountancy Standards for phase two of Government’s Apprenticeship Trailblazer initiative, Michael Walby, Director of Professional Qualification Training at KPMG said :
• "Anyone taking the view they are out of sight and will not be discovered should think again,” says KPMG
• Newark Joiners Limited (in administration)
• Ferguson-Ailsa Limited (in administration)
KPMG is delighted to announce the appointment of Yael Selfin as a Director in the firm’s Economics and Disputes practice.
Reacting to the publication, today, of a report by the Equality & Human Rights Commission, which focuses on the low pay and poor working conditions facing the UK’s commercial cleaning workforce, Guy Stallard, Head of Facilities at KPMG, suggests that organisations have a responsibility to ensure all employees avoid the ‘working poverty’ trap.
Yael Selfin, Economics Director at KPMG comments on today’s Bank of England’s Inflation Report August 2014. She said:
Reacting to the publication, this morning, of the latest UK employment figures, which have seen unemployment levels fall by 132,000 to 2.08 million, Stephen Barter, a director at KPMG, says:
Analysis of the UK Government’s Construction Pipeline highlights that transport projects dominate construction spend at £66.2bn, accounting for over half of the total pipeline value, according to analysis published today by KPMG.
• Online sales of Non-Food products in the UK grew 14.9% in July versus a year earlier. In July 2013, they had increased by 7.9% over the previous year.
• In July, online sales represented 16.7% of total Non-Food sales of our Monitor, against 15.3% in July 2013. July’s penetration was almost in line with its 3-month average of 16.9%.
• Furniture reported its best online growth rate since February, an achievement given the nice weather.
• Online sales contributed 1.6 percentage points to the growth of Non-Food total sales in July. Over the last three months, the online contribution was almost as much as the stores contribution and the highest recorded this year.
• UK retail sales were down 0.3% on a like-for-like basis from July 2013, when they had increased 2.2% on the preceding year. On a total basis, sales were up 1.3%, against a 3.9% rise in July 2013. The three-month average total sales growth, 1.3%, is below the twelve-month average of 2.3%.
• Furniture was the best performing category, reporting its highest growth since January, excluding Easter distortions. Meanwhile, Food was the worst performing category and experienced its deepest three-month average decline since our records began in December 2008.
• Over the last three months, Food showed a decline of 1.4%, in contrast with the growth of 0.4% experienced over the last twelve months. Non-Food reported growth of 3.4% over the three months to July 2014, in line with its twelve-month average of 3.8%.
• Online sales of non-food products in the UK grew 14.9% in July versus a year earlier. The Non-Food online penetration rate was 16.7% in July, 1.4 percentage point higher than in July 2013.
Yael Selfin, Economics Director at KPMG comments on today’s ONS trade figures for June 2014. She said:
James Stamp, KPMG’s head of transport, comments as Airports Commission consultation closes on its inner Thames estuary study outputs. He said:
Yael Selfin, Economics Director at KPMG comments on today’s Bank of England vote to maintain the Bank Rate at 0.5%. She said:
Tom Burton, a director in KPMG’s cyber security practice, comments on news that a Russian gang has hacked 1.2 billion usernames and passwords belonging to more than 500 million email addresses. He argues that whilst the scale of the breach is eye-catching, the real issue is what they can do with the stolen data. He also argues that this latest breach might finally be the wake-up call businesses need when it comes to password protection.
Yael Selfin, Economics Director at KPMG comments on the latest ONS industrial production figures. She said:
Richard Threlfall, KPMG’s UK Head of Infrastructure, Building and Construction comments on the joint One North report published by an alliance of five cities - Leeds, Liverpool, Manchester, Newcastle and Sheffield. He said:
• A rate rise is expected, but its timing is critical
• A 0.5% increase in the Bank Rate would increase the average consumer’s annual mortgage payment by £317
Yael Selfin, Economics Director at KPMG comments on the latest Markit/CIPS UK Services PMI data. She said:
KPMG’s UK Head of Infrastructure, Building and Construction, Richard Threlfall, comments on today’s Markit/CIPS UK Construction PMI figures which report the sharpest rise in housing construction since November 2003. He said:
Yael Selfin, Economics Director at KPMG comments on the latest Markit/CIPS UK Manufacturing PMI data, of a fall to 55.4 from 57.2 in June.
The UK tech sector enjoyed a quarter of robust growth from April to June 2014 with the expansion of business activity rising at its fastest pace since the onset of the financial crisis, in 2007.
• Marked increase in frauds committed by those under 35 years of age
• Size is everything as smaller value frauds dominate the Courts’ attention
• ‘Wolf of Old Hall Street’ conned investors out of £4.4 million
With some of the lowest gross domestic product (GDP) rates in the developed world, UK cities outside London must reinvent themselves as magnets for young wealth creators, in order to generate long terms economic growth, according to the new research by KPMG.
• Provisions for bad debts – larger and more volatile
• Biggest impact on banks, also significant for insurers
• No convergence with US rules – lack of comparability for investors and increased costs for companies
• Big impact on systems and processes – companies need to start addressing now
Wil Rockall, Director at KPMG’s cyber security practice, comments on news that security experts have developed technology that would keep automobiles safe from cyber attacks. He said:
According to Bank of England Trends in Lending figures released today net lending to UK businesses was positive in the three months to May, in contrast to a negative flow in the previous period.
The health of retail edges upwards in Quarter two, but the Retail Think Tank cautions that competitive tension in the food sector risks derailing the recovery in Quarter three.
Reacting to the publication, today, of the latest UK employment figures, which have seen unemployment levels fall to 6.5%, Bernard Brown, partner and head of business services, at KPMG, says:
KPMG is delighted to announce the appointment of Josh White as an associate director in the firm’s Competition Economics practice.
Richard Threlfall, KPMG’s UK Head of Infrastructure, Building and Construction comments on the Government's Infrastructure Cost Review programme and the updated Project Initiation Routemap published today. He said:
KPMG and Imperial College London today announce the launch of a major new partnership to create the ‘KPMG Centre for Advanced Business Analytics’. KPMG will invest over £20m, with the aim of putting the UK at the forefront of data science.
• UK retail sales were down 0.8% on a like-for-like basis from June 2013, when they had increased 1.4% on the preceding year. On a total basis, sales were up 0.6%, against a 2.9% rise in June 2013.
Lord Michael Hastings, KPMG International’s Head of Corporate Social Responsibility, has been recognised for his outstanding contribution to civil society and social responsibility around the world.
• Online sales of Non-Food products in the UK grew 10.6% in June versus a year earlier. In June 2013, they had increased by 12.5% over the previous year. This is the lowest online growth recorded since July 2013.
• In June, online sales represented 17.2% of total Non-Food sales of our Monitor, against 15.9% in June 2013. June’s penetration was greater than its 3-month average, at 16.7%.
• Excluding Health & Beauty, Footwear was the only category to report growth above the total 3-month and 12-month averages. Indeed, there was a strong contribution of online to UK Footwear sales last month. Toys & Baby Equipment – reported for the first time in this release – performed ahead of Clothing and the home categories.
• Online sales contributed 1.4 percentage points to the growth of Non-Food total sales. When compared to the UK total sales growth of 0.6% last month, this can be viewed as a strong online performance.
• New rules being drawn-up to ensure renewal quotes include previous premiums are a step in the right direction
• However relying on the basic requirement may provide customers with misleading information
• Insurers should prepare for more rules to come in the FCA’s final report
• KPMG has further strengthened its UK cyber security practice with two new senior appointments: a partner and a director.
Commenting on news that an emergency surveillance law will be debated in Parliament on Monday, Tom Burton, a director in KPMG’s cyber security practice, says:
• KPMG advises on sale of London luxury boutique hotels to Starhotels S.p.A
Aerospace & Defence organisations are set to increase their investment in research and development, whilst also looking to create partnerships with suppliers and customers to make the most of their capital, according to KPMG’s 2014 Global Aerospace & Defence Outlook.
Vincent Neate, Head of Climate Change and Sustainability at KPMG on financing the transition to a sustainable ‘blue’ economy, in response to Prince Charles’ keynote speech on sustainability today. He said:
KPMG is recruiting up to 30 corporate tax compliance professionals to its Birmingham office to establish a satellite Tax Centre of Excellence for corporate tax compliance.
• permanent and temporary staff availability both tumble
• demand for staff and placements both continue to rise sharply
• series record increase in average starting salaries recorded
Howard Smith and Jonny Marston of KPMG were appointed Joint Administrators of Brian Leighton (Garages) Limited (the ‘Company’) on 25 June 2014.
Commenting on ‘Employee Ownership Day’ and news that start-up companies are behind a rise in the number of organisations adopting ‘employee ownership’ business models, KPMG’s David Fairs argues that how they handle inter-generational demands will be key to success or failure.
Richard Threlfall, Partner and UK Head of Infrastructure, Building and Construction at KPMG, comments on the further detail of the Infrastructure Commission put forward by Sir John Armitt today. He said:
Commenting on Prime Minister David Cameron’s announcement that he is to launch a review, led by the economist Jim O’Neill, to identify why the international market has failed to bring forward new medicines, Professor Hilary Thomas, partner at KPMG, said:
• Today’s Markit/CIPS UK Construction PMI reports output growth at four-month high in June, with job creation hitting a survey-record pace.
Cyber security and data protection have been ranked a surprising third in a list of Boardroom priorities, according to a survey released today by KPMG.
• Outsourcing and collaboration is increasing, shifting from cost-saving to accelerated innovation
• But excessive administration and complexity still holds scientists back from devoting time to vital R&D
Mike Kelly, director and Head of Living Wage at KPMG, reacts to the Department for Work and Pensions’ Households Below Average Income (HBAI) report released today. He said:
Responding to news that charges have been halved for surfing the internet, or making and receiving calls, whilst roaming in the EU, KPMG’s Sean Kennedy argues that whilst consumers will benefit from lower bills, there is a risk that they may also face mixed service levels, as operators have less money available to upgrade networks across Europe.
The latest CIPS UK Manufacturing PMI has reported strong growth of output, new orders and jobs.
KPMG has announced that Chris Hearld is to be appointed Regional Chairman for the North of England from 1st October 2014.
• Greater patient empowerment is essential to a more cost-effective NHS
• Shifting focus from ‘sick-care’ to ‘self-care’ an imperative
• ‘Activated’ patients cost up to 20% less than patients who have not been equipped with the same skills and information
Paul Dumbell and Brian Green from KPMG’s Restructuring team in Manchester have today been appointed joint administrators of Ruthin Castle Limited, the historic grade II listed hotel and spa situated in Ruthin, North Wales.
Richard Threlfall, KPMG UK Head of Infrastructure, Building and Construction, responds to the ICE’s State of the Nation report:
Guy Stallard, director of facilities at KPMG, responds to the Government’s announcement that legislation will be introduced banning employers from stopping staff, with zero-hours contracts, from seeking work elsewhere. He argues that by introducing flexibility, employees will be better able to earn more to help them meet essential living costs.
How often have we heard the statement that “relationships are our greatest asset” without seeing behaviours that back it up? How people practically think about the value of relationships in business is critical to business success, according to a new report by Tomorrow’s Company, the London-based global business think tank.
Staff at KPMG’s Canary Wharf headquarters are swapping calculators for a fitness app as the firm launches StepJockey today, to help staff keep fit and improve their general well being.
Mike Kelly, director and Head of Living Wage at KPMG, comments as the Living Wage Commission publishes its final report into low pay. He argues that UK businesses have a duty and responsibility to use the proposed blueprint and help lift one million UK citizens out of low pay.
• Australian and German banks lead the way on service
• Chinese customers are most likely to recommend their bank brand
• UK lagging behind and can learn from other countries
• Technology is critical but human face of banks still needed
• The shrinking banking sector presents major opportunities for asset managers
• Regulation has moved forward to ‘implementation phase’
• Industry has a huge and important role to play in the global savings debate
• Political uncertainty and regulatory scrutiny are still key challenges
On the back of the Government announcing plans for a high-speed rail link, HS3, aimed at helping to rebalance the UK economy, Richard Threlfall, Partner and UK Head of Infrastructure, Building and Construction at KPMG, has welcomed the scheme and compares it to the build of the M25 and the Channel Tunnel. He said:
The UK public is torn between the fundamental principles of freedom of speech and the level of involvement the State should have protecting its citizens online, according to a survey of more than 1,000 people carried out by KPMG and Censuswide.
• The UK has moved from 3rd to 2nd position in the rankings of ten major countries’ tax systems analysed by KPMG International in its biennial “Competitive Alternatives: Focus on Tax” study (KPMG’s Focus on Tax).
David McCorquodale, UK Head of Retail at KPMG, comments on the latest Retail Sales figures from the Office for National Statistics (ONS):
Reacting to Ed Miliband’s call for 18-21 year olds to undergo training if they can’t find employment, David Fairs, Partner in KPMG’s people and change practice, said:
• Price wars are a “race to the bottom” and could deter future investors
• Shift to convenience store shopping has been driven by retailers - not consumers
• But convenience stores sales are now so significant they risk rendering hypermarkets obsolete in their current form
• ‘Drive through’ supermarkets and free doorstep delivery would offer consumers the ultimate in convenience and choice
Consumers will change their buying habits and shop elsewhere if British businesses fail to pay staff a fair wage. According to a survey of more than 1,000 individuals across the UK, most people believe that the country’s continued economic recovery demands a close examination of the UK’s wage structure – and many think that the lowest paid workers should be the first to benefit.
• Steve Labrum joins from Alvarez and Marsal
• Optimism running high again
Commenting on the measures announced today, which will make it easier for Chinese citizens to obtain a visa and visit the UK, David McCorquodale, head of retail at KPMG, said:
• The LDI market grew by 17% to £517bn of liabilities hedged at the end of 2013.
• The “Big 3” managers (L&G, Insight and BlackRock) continue to dominate the market share, however the survey highlights that the other players are capturing the overall market growth.
• KPMG expects 2014 to see continued growth in this asset class.
• Client bases will be fundamentally different by 2030
• Number of players in the global market will halve within 15 years
• Asset managers are behind the curve on embracing new technology
• Big tech companies like Google and Amazon are well-placed to make moves into the sector
Adam Davis joins from Metlife UK, where he built up its bulk annuity business
On the back of the news that Anonymous Brazil have defaced and brought down a number of World Cup related websites, including Brazilian government agencies and attacked top FIFA partner sites, Edward Parsons, senior manager in the cyber security at KPMG said:
Edward Parsons, senior manager in KPMG’s cyber security team, comments on the cyber security risks facing businesses in the wake of software being developed to aid whistleblowers. Increased corporate transparency is an important developing trend but he warns that companies need to be aware that these tools could be used by insiders to steal or leak huge volumes of sensitive data, further complicating the insider threat issue for business. He said:
Commenting on the Chancellor’s expected announcement to strengthen the regulation of the foreign currency market, Bill Michael, EMA head of financial services at KPMG, commented:
• Competition and Market Authority’s announcement “will help the industry make positive steps towards aligning customer and insurer interest“
• Announcement reflects a general trend towards greater clarity across industry
• Board agendas expected to refocus on technology and competitive advantage
Commenting on tonight’s announcement of measures by the Chancellor to kickstart housebuilding, Jan Crosby, Head of Housing at KPMG, said:
With one day to go before the 2014 World Cup kicks off, KPMG’s David Fairs urges employers to consider the long-term benefits of flexible working, at a time when the improving jobs market is tempting staff to think about their next move. He warns, however, that only introducing it as a short-term measure could backfire, if employees feel they are not trusted to manage their time effectively.
Reacting to the publication, today, of the latest UK employment figures, which have seen unemployment levels fall by 161,000 to 2.16 million, Bernard Brown, partner and head of business services, at KPMG, says:
• New Code of practice places more weight on maintaining a strong pension plan sponsor
• Facilitates a more collaborative approach between employers and their pension schemes
• Likely to lead to some reductions in employer deficit contributions
• Online sales of Non-Food products in the UK grew 17.0% in May versus a year earlier. In May 2013, they had increased by 9.9% over the previous year. This is the highest online growth recorded since our records started in December 2012, excluding Christmas and New Year.
• In May, online sales represented 18.7% of total Non-Food sales of our Monitor, against 17.0% in May 2013. May’s penetration is the second-highest recorded by our monitor, after last November.
• The Other Non-Food category contributed over half of the growth. Clothing reported its highest growth since Christmas, and Footwear since December 2012.
• Online sales contributed 2.1 percentage points to the growth of Non-Food total sales. Over the last three months, Online represented one third of the total Non-Food growth.
• Permanent placements and temporary billings continue to rise strongly...
• ...despite sharply falling candidate availability
• Further strong rise in permanent salaries, while temp pay growth accelerates
• New Dutch style ‘defined ambition’ pensions are not for all but can work well in some situations, says KPMG
• Challenge for Government is to avoid ‘strangling them at birth’ with red tape, warns KPMG
Commenting on the latest CIPS UK Construction PMI Richard Threlfall, KPMG UK Head of Infrastructure, Building and Construction, said demand was outstripping supply resulting in rising costs for main contractors.
Acquisition positions KPMG as leading provider of business process management solutions
• Consultation papers go beyond the approvals process
• Over 1,000 pages of material published
• Papers cover pillars 1 and 2, but not reporting
• UK insurers can learn vital lessons from the e-retailing sector who perform better at customer experience
• Chinese insurers have embraced change, achieving the highest improvement in customer experience in the past year
• KPMG report advises insurers to focus on personal interaction, digital channels and adopt retailing mentality
Wil Rockall, director in KPMG’s cyber security team, comments on the news that Google will produce its own fleet of driverless cars.
KPMG is delighted to announce that that the firm has been awarded a place on the Government’s list of preferred suppliers for cloud services, known as G-Cloud 5.
Consumers have called on policymakers to create a Privacy Charter to dictate what organisations should be allowed to share in terms of personal data online, and as importantly, what compensation they should receive when organisations are hacked.
Commenting on the Buckle Report proposals to raise the value of the National Minimum Wage and support the Living Wage as a voluntary standard, Marianne Fallon, partner and UK Head of Corporate Affairs, at KPMG, says:
Wil Rockall, Director in KPMG’s cyber security team, comments on the news that electric grid and other critical infrastructure industries are vulnerable to hacking but complacent about cyber risks.
• BSRC must be set up to succeed
• Chairman must have thorough understanding of banking industry and its broader role
• Time for the industry to be bold and courageous
• KPMG is seeing significant M&A activity amongst mid-cap oil and gas companies
• Suppressed share prices will be a major factor in driving deals
• Non-domestic competition could encourage new efficiencies
• Significant challenges for water companies as they navigate the new market changes
Commenting on the announcement by Danone that it is in talks with a number of potential buyers over the sale of the majority of its medical nutrition division, Chris Stott, food and drink partner at KPMG, said:
KPMG’s Cyber Security practice is pleased to announce four new senior level appointments as it continues to strengthen and deepen the expertise offered to clients.
Commenting on news that Carphone Warehouse and Dixons Retail have revealed plans for a £3.7 billion merger, Wil Rockall, a director in KPMG’s cyber security team, says:
• Senior manufacturing executives rank the UK 2nd, along with China, as a country where global companies expect to derive the majority of their sales growth over the next two years, ahead of Germany, India and Japan
• 85% of UK manufacturers are moving to 3-D printing to reduce their product development life cycle
• UK companies are falling behind their global peers in R&D spending, despite recent UK tax incentives
• Supply chains are playing an active role in innovation, yet concerns about poor IT systems limiting supply chain visibility and product profitability are high on the agenda
Reacting to the publication, today, of the latest UK employment figures, which have seen unemployment levels fall by 133,000 to 6.8 percent, Bernard Brown, partner and head of business services, in KPMG’s management consulting practice, says:
• UK retail sales were up 4.2% on a like-for-like basis from April 2013, when they had decreased 2.2% on the preceding year. On a total basis, sales were up 5.7%, against a 0.6% fall in April 2013. Growth was positively distorted by the timing of Easter.
• Furniture & Flooring was the best performing category, reporting its highest growth since Easter 2006. Strong growth was also recorded in Other Non-Food and Children’s fashion.
• Including both the positive and the negative distortions from Easter, the 12-month total sales growth now stands at 2.8%, ahead of the average CPI over the 12 months to March at 2.3%.
• Online sales of non-food products in the UK grew 11.2% in April versus a year earlier. The Non-Food online penetration rate was 16.1% in April, the lowest since April 2013.
• Permanent placements growth accelerates, but temp billings rise at slower pace
• Decline in candidate availability intensifies
• Fastest permanent salary growth since July 2007
KPMG in the UK has announced the appointment of Richard Gostling to its executive management team as Head of Sectors. Richard joins from Goldman Sachs where he was Head of Business Services.
• European Family Business Tax Monitor compares the tax treatment of inter-generational family business transfers in 23 European countries.
• UK analysis shows how tax exemptions can dramatically affect the tax payable in the scenario analysed.
• Tax treatment varies significantly across Europe, with differing levels of complexity and obligations.
• The potential tax burden on business transfers within the family could hinder future growth and investment.
KPMG’s UK Head of Automotive, John Leech, comments on the 8.2 per cent rise in April’s UK car sales published by the SMMT today.
Allan Graham from KPMG Restructuring was appointed administrator of OLCI Construction Training on Tuesday 6th May.
Recent changes to the UK tax system aimed at improving its attractiveness to businesses are paying dividends, according to KPMG in the UK. The firm is working with almost 100 businesses that are actively considering locating operations in the UK.
Landmark new report explains why the 2015 government must commit to transforming England’s broken housebuilding market, or cope with a deepening housing crisis
More than 90 percent of people believe that admitting to a mental health condition could damage their career prospects*. The result is that most give a different reason to their employer, if they need time off from work.
Commenting on the government’s announcement that it has approved five offshore wind farm projects, Adrian Scholtz, head of renewables at KPMG said: