Press Release, 25 October 2022 PwC Luxembourg is proud to report a double-digit 11% increase in topline, thereby exceeding the half a billion euros turnover mark for the year ended 30 June 2022.
PwC Luxembourg Annual Review 2022: Progressing on our ambitions to build trust and deliver on sustained outcomes
John Parkhouse, CEO of PwC Luxembourg on the performance, “Despite the turmoil we have seen in recent months, we have witnessed very strong growth across all our businesses – posting a remarkable 11% growth in our turnover, taking our firm comfortably past the half a billion mark (EUR 543M), and representing EUR 480M in net revenue. I would like to thank our clients for their continued trust in our services, our people for their passion and commitment and the broader community for their support and recognition of what we try to bring to our society. Never has it been more important for business, policymakers and society as a whole to work together on providing the stability and access to opportunities which are so important to us all.
An area where we placed considerable effort last year, and where we will do so again this year, concerns the recruitment and retention of talent. From listening carefully to our People, we identified four distinct priorities in which we invested: Healthy Environment, Competitive Compensation
Talent Management and Differentiated Careers. It goes without saying that without a successful and sustainable business nothing would be possible and one of the key elements to make that happen is a sustainable workforce. This is why our People remain a core focus and why we work on building a meaningful journey for them allowing for pro-bono work, professional associations’ membership and community engagements.”
Prosperity – Business Review
Our financial year, which spanned from 1 July 2021 to 30 June 2022, was a very special year that started with a shift in the pandemic, where modern medicine allowed for a new normality and a feeling of optimism. Turbulent events however began to impact us mostly in the second half of our financial year, with a growing energy crisis and disrupted supply chains, as well as a very strong core inflation, especially in the US.
As a professional services firm in Luxembourg, we see our 11% increase in our net revenue as a major achievement, particularly in a time of growing turbulence, witness of the reach of our services on local clients, subsidiaries of international groups, as well beyond the local market.
FY22 continued to be marked by three major business trends:
We support our clients with services in five major industries: Alternatives, Asset and Wealth Management (AWM), Banking, Insurance and Industry & Public Sector (IPS):
Our Core business - Advisory: +13.9% (% of turnover = 21.5%)
Our Advisory practice had a very successful year, reporting a 13.9% growth to EUR 116.5M, and was an important contributor to the overall growth of PwC Luxembourg. This performance reflects the attractiveness of our services and their relevance to clients’ needs in uncertain times as well as a constantly evolving and attracting talent strategy.
Our Core Business – Assurance: +10.6% (% of turnover = 50.1%)
FY22 has been another very strong year for our Assurance practice with a growth of 10.6% to EUR 272.4M. As with the rest of the firm, the lion’s share of this growth is attributable to the Alternatives industry. It should, however, be noted that all other industries, except for Insurance (as expected due to mandatory audit firms rotation in both 2021 and 2022), have also experienced a robust level of growth.
Our Core Business – Tax: +9.0% (% of turnover = 28.4%)
In FY22, turnover from our Tax Services grew by more than 9% to EUR 154.4M. The solid growth is equally spread over all of our Tax Services. The Tax Services practice continues to be recognised as the leading provider of consulting, compliance and managed services in Luxembourg, in terms of size, turnover and services scope.
Highlights from the other WEF-IBC pillars
This is the third year that PwC Luxembourg has aligned its materiality matrix to the work performed by the World Economic Forum (WEF),with the support of the International Business Council (IBC) and the Big Four, a set of common metrics that rest at the heart of long-term value creation, (and the seventh of reporting in this area)
Adopting those universal standards and disclosures enables us to unlock long-term value through greater transparency, accountability, and business transformation. The WEF-IBC framework includes 21 core and 34 expanded metrics that define the most important sustainability issues businesses should address. In 2021, we identified the 13 Ambitions that are a priority to us.
The year 2022 was about continuing in setting ambitious and collective actions. Our team at PwC Luxembourg established the frameworks, key performance indicators (KPIs) and actions necessary to fulfil our commitment to our 13 Ambitions.
Our People are a key success factor in building a prosperous future at PwC Luxembourg. With 3,100 employees from 85 countries, we are the largest professional services firm in the country. A strong workforce that is thriving and healthy is important for our growth. To reach this, our ambition is to create a diverse and inclusive environment that encourages career advancement and engagement for all our People. In FY22, we increased by 5% the gender diversity for each management level to achieve a 40-60 gender balance. Furthermore, we have seen a significant increase (more than 5%) in our Well-being and Flexibility index, meaning our flexibility measures and programmes provided to our People are unique in the market.
Climate change is undeniably the biggest business and social challenge of the current century and the business community has a pivotal role to play in making positive change. Following PwC global network’s ambitious Net Zero 2030 Commitment, we continued this year to transform our firm’s business model by decarbonising our operations and value chain while also engaging with clients and suppliers to meet these ambitions.
Principles of Governance
Governance is the foundation of how we build that trust and continued long-term value with our stakeholders. We believe accountability, responsibility and stewardship principles are important governing values. They ensure that we execute our ambitions for the business, our clients, stakeholders, the planet, and society. In FY22, the SUSTAIN@PwC committee continued to execute on the firm’s sustainability strategy and ambitions.
Special Offer for New Members! Any new member joining the British Chamber now will have the remainder of 2022 free and will only be invoiced for 2023 Annual Membership. See here or for further information please call +352 465 466 or email email@example.com.
The American Chamber of Commerce in Luxembourg (AMCHAM) and the British Chamber of Commerce for Luxembourg (BCC) held their traditional joint "Personal Tax Lunch" in the Salon Panoramique at DoubleTree by Hilton hotel in Luxembourg-Dommeldange on Monday 14 November 2022. Laura Foulds, Managing Director at Analie Tax & Consulting, for her annual in-person personal tax update (after a couple of COVID-19-related virtual editions). Laura provided attendees with an update on changes in Luxembourg regarding personal tax this year as well as expected changes for 2023 and provided feedback on commonly asked questions around filing taxes in Luxembourg.
Multinational law firm Pinsent Masons is spearheading the annual toy drive, Supporting Young Lives, to support vulnerable and disadvantaged children as the firm gears up to mark International Children’s Day 2022.