2007

Under an innovative new agreement announced today, KPMG staff in the UK who use the firm's American Express Corporate Card to pay for their business expenses will be helping to raise funds for KPMG's charity of the year, currently Help the Hospices

Successful launch for KPMG Europe LLP.

KPMG named ´Global Firm of the Year´

Retail sales in Central London in November were 0.4% higher than a year earlier, on a like-for-like basis, the weakest since October 2005 and compared with an 8.5% year-on-year increase in November 2006,when sales were recovering from the July 2005 bombings.

Crumbling infrastructure and a rising tide of red tape will undermine London's ability to compete with New York and Tokyo, a survey of business leaders reveals today.

Covering the four weeks 28 October - 24 November 2007

A lack of awareness of UK and US anti-bribery and corruption laws, and a failure to communicate the rules to employees, is exposing British companies to increased risk, according to a new report from KPMG Forensic.

James Money and Mark Orton of KPMG Restructuring were appointed as joint administrators of Ecomold on Thursday 29 November, following an application by the directors.

Results Reflect Strong Growth Across All Service Lines

Staff well-being and productivity levels in offices up and down the UK could be being adversely affected by high levels of CO2 in the air, KPMG has warned.

Businesses in London struggling to meet their skills needs are increasingly looking overseas for both graduates and lower-skilled staff, the CBI and KPMG revealed today (Friday).

KPMG scoops four awards at Accountancy Age ceremony

Allan Graham, Joff Pope and Myles Halley of KPMG have been appointed joint administrators to cosmetics manufacturer Creative Outsourcing Solutions International Limited.

The autumn 2007 KPMG Business Outlook Survey, which surveys around 1,400 service sector firms across the BRIC region (Brazil, Russia, India and China), found that service providers expect their rapid current growth to be sustained in 2008.

KPMG survey finds steep decline in EU service sector business optimism - reflects growing concerns for global economic outlook

Risk management to take more forward-looking role but lack of full understanding of risk issues remains a hindrance

Key industry strategy for subscriber growth & retention increasingly unfounded

Job seekers from around the world will be able to take part in a virtual careers forum focusing on the recruitment of women later this month, and find out about opportunities in KPMG member firms and other companies across the world.

October's Report on Jobs, from the Recruitment and Employment Federation and KPMG signalled weaker growth of permanent employment, with the latest rise in placements the slowest for thirteen months. Ongoing skill shortages drove a further increase in staff salaries, although pay inflation remained well below July's nine-year peak.

Figures released today by the Insolvency Service show a continued high level of personal insolvencies in the UK.

As many UK listed companies prepare to produce half-yearly reports in the next few months under international accounting standards (IAS 34) for the first time, a survey by KPMG in the UK of German and UK companies suggests that the introduction of the new requirements may produce some significant changes in communication between companies and capital markets

Blair Nimmo and Tony Friar of KPMG Restructuring were appointed as joint administrators of Hunslet-Barclay on Friday 26th October, following an application by the directors to the Court of Session.

KPMG partner, Alan Downey, has been appointed as the first Chair of the newly formed Institute of Business Consulting (IBC). In this new role, Downey will play a leading role in shaping and influencing the strategic direction of the Institute. His two-year appointment starts with immediate effect.

HMRC have announced that they will not, after all, seek to collect income tax/NIC on medical check-ups or health screenings in the 2007/2008 tax year, even if check-ups or health screenings have not been made "available to all employees"

Retail sales in Central London in September were 6.8% higher than a year earlier, on a like-for-like basis, a good gain on top of the 13.3% year-on-year increase in September 2006, when sales were recovering from the July 2005 bombings. But sales growth was the weakest since May 2007.

KPMG Forensic has recruited Brian Dilley as a partner within its anti-money laundering and financial services practice.

Various types of passive investors are affected differently by the changes to capital gains tax announced this week in the pre budget report.

Bristol-based professional services firms KPMG Corporate Finance and Burges Salmon have advised on the disposal of West Cornwall Pasty Co Limited (WCPCo) to a management buyout team for an undisclosed sum.

- Over £100 billion of closed fund policyholder liabilities reorganised in last 2 years
- Overall total policyholder liabilities in UK life run-off have decreased to £132 billion
- Capital tied up in UK life run-off has increased to £16.2 billion
- Over 3,300 pension schemes in run-off with over £200 billion of aggregate liabilities

The UK life run-off market in 2006 saw considerable reorganisation and consolidation, according to the findings of the KPMG/ARC Run-Off Survey - Life Assurance.

Widespread dissatisfaction with Civil Procedure Rules

Commenting on the implications of yesterday's pre budget report for second home owners, Carolyn Steppler, private client tax director at KPMG in the UK, said

Commenting on today's announcement, Ronnie McCombe of KPMG in the UK

Commenting on today's "double whammy" for the aviation industry, Frank Sangster, head of KPMG's environmental tax and incentives group, said:

Commenting on today's announcement of a flat capital gains tax rate of 18 per cent and the abolition of business asset taper relief from April 2008, Anneli Collins, Head of Private Equity Tax of KPMG in the UK.

Paul Flint and Brian Green from KPMG Restructuring have been appointed as administrators to DKD Contact Limited.

Iain Hasdell, partner at KPMG in the North West and head of its UK local government advisory business, comments.

HMRC today committed to providing advance tax agreements to overseas businesses investing over £250 milion from abroad into the UK.

Commenting on what today's announcement held for big business, Adam Bainbridge, Head of Corporate Tax and KPMG in the UK.

Andrew Smith, KPMG Chief Economist comments.

Chris Morgan, Head of International Corporate Tax at KPMG, comments.

CGT changes mean employee shareholders worse off whereas non-employees gain

Commenting on today's announcement to raise the IHT threshold to £600,000, Carolyn Steppler, tax director at KPMG in the UK

Commenting on today's announcement to change the tax treatment of non-domiciled individuals, Carolyn Steppler, tax director at KPMG in the UK.

Sales up as temperatures and prices fall: UK retail sales rose 3.0% on a like-for-like basis, compared with September 2006, when sales were up 2.4%

Commenting on today's spending plans on health, Chris Nicholson, KPMG Head of Public Sector.

Commenting on today's Pre-Budget Report, Tom McGinness, Head of Middle Market Tax at KPMG in the UK

Sue Bonney, head of tax at KPMG Europe LLP, urges Alistair Darling to resist the temptation to table hastily drafted, electioneering tax changes at his first PBR with the following comments: "So Alistair Darling will stand up and deliver his first comprehensive spending review and first pre-budget report next Tuesday. Let's hope he will resist the temptation to table hastily drafted tax changes. "For me, and I think for most tax people, pre-budget reports and budgets are times of great excitement. The adrenaline pumps as we scramble to pick through the latest changes to the tax system to work out what the consequences will be."

The Joint Administrators of Dolgarrog Aluminium Limited have started a phased wind down of the plant following the failure of a number of interested parties to complete a sale of the business and assets.

- Chancellor's hands tied for total spending 2008/09-2010/11
- Credit crunch casts uncertainty on GDP growth
- Corporate tax receipts falling short of expectations
- Time for a revamp of the 'golden rule' ?

- Chief executives see total remuneration rise 16 percent - up from nine percent last year
- Incentive plan grant levels abutting or exceeding maximum 'normal' levels
- 'Credit crunch' may hit this year's bonuses

KPMG investor opinion survey reveals need for clarity and simplification in reporting

- Clear vote in favor of Commission proposals for common corporate tax base
- Majority expect system to be in place by 2015
- Strong support for pan-European tax rate

KPMG aims to put Fairtrade on London FTSE 100 giants' agendas.

The implementation of IFRS for the first time this year by AIM companies is resulting in delays to interim announcements, research by KPMG has found, leaving a likely glut of announcements in the last week of September before the 30 September deadline for companies with December year ends.

IT risks rising up audit committee agendas

Graham Pearce, one of the most experienced commercial transaction actuaries in Germany, has joined KPMG in Germany at partner level to head up a new Pensions Advisory team within its Transaction Services practice.

Chris Laverty and Mick McLoughlin of KPMG LLP have been appointed joint administrators of Victoria Mortgage Funding Ltd (VMF).

Deal flow between emerging and developed economies is beginning to converge as companies from the BRIC nations (Brazil, Russia, India and China) start to ramp up their mergers and acquisitions activity, according to KPMG's Emerging Markets International Acquisitions Tracker

Black business network launches 'Project Vibe'

Live-in pub managers have reason to celebrate this summer as Her Majesty's Revenue and Customs (HMRC) abandon plans to remove valuable tax breaks on the accommodation provided by their employers.

Administrators appointed to B.A. Peters Plc

The summer 2007 KPMG Business Outlook Survey, which surveys over 3,700 manufacturing firms across the EU, found manufacturers extremely upbeat about their business prospects for the next twelve months.

Brian Green, Paul Flint and Myles Halley from KPMG Restructuring have been appointed as administrators to Dolgarrog Aluminium Limited

- Latest Insolvency Service figures show personal insolvencies down by 8% this quarter but up 28% compared to previous year
- Interest rate rises and the end of cheap fixed rate deals could force more individuals over the edge
- KPMG predicts a record number of personal insolvencies of 120,000 in 2007

Figures released today by the Insolvency Service show a continued high level of personal insolvencies in the UK.

- New recruits join from traditional actuarial firms
- Latest appointments bring partner complement to 16 in KPMG pensions - six of whom are new in KPMG's current financial year*
- Pensions business on track to double in size

- £600m of fraud comes to court in first six months of 2007 alone
- Over 100 cases for the fourth six month period in a row
- Huge carousel fraud cases drive fraud value
- Insider frauds continue to proliferate

The House of Lords has dismissed HM Revenue and Customs' appeal in the so-called "Arctic Systems" case.

Firm Suggests Operational Framework to Achieving Successful Digital Transformation

- Range of assumptions creates "margins of error" of tens of billions of pounds in pension liability calculations
- Life expectancy assumptions vary by seven years across the companies sampled and by five years in the financial services sector
- Financial services workers expected to live up to a year longer than those in other sectors

KPMG has found that wide ranges persist in the mortality assumptions used to calculate pension fund liabilities.

Using cash to clear pension deficits is almost never a good move, according to the 2007 KPMG Pension Repayment Monitor

A survey conducted for KPMG in the UK indicates that the UK is at a key tipping point in terms of its tax competitiveness and that recent consultations announced by HMRC have not come a moment too soon.

KPMG Corporate Finance's Global M&A Predictor suggests that global merger and acquisition (M&A) activity is about to peak, and forecasts a fall in overall deal volumes this year. Although liquidity remains high, and deal values continue to rise, KPMG expects global deal volumes in 2007 to be below those achieved in 2006, a year during which both average deal size and the number of deals hit record highs.

KPMG has appointed Phil Smart to head up its Insurance Technical Advisory Group which covers the life and general insurance, Lloyds and broking business.

Joint administrators Richard Fleming, Howard Smith and Mark Firmin of KPMG LLP today announce the sale of Leeds United to Leeds United Football Club Limited, headed by Ken Bates, for an undisclosed sum.

WEATHER AND CLEARANCES DISTORT SALES

Leeds United: Administrator's update

The complete over-haul of European regulatory capital for insurers and re-insurers came a major step closer today with the European Commission's proposal for a Solvency II Framework Directive. KPMG welcomed the announcement but cautioned that there will be winners and losers in the transfer to the new regime.

Today sees the launch of a new supermarket FreshXpress out of the remains of Kwik Save. David Costley-Wood and Brian Green, business rescue specialists from KPMG, are pleased that a number of the stores have been saved.

- Spending up by nearly 60 percent over previous three years
- Senior management more involved
- But regulation needs to be better focused, six out of ten say
- Transaction monitoring needs enhancing as staff remain first line of defence

The cost of fighting money laundering has risen dramatically for banks across the world as they have become increasingly engaged in the struggle against criminality.

New white paper explores Enterprise 2.0 technology and its potential for corporate adoption

KPMG research finds 'disconnect' between funds management industry & Generation Y

Emma Baylis, director of M&A tax at KPMG, has been included in Management Today's '35 Women Under 35' list, which recognises outstanding young women in business.

KPMG's member firm in Switzerland has voted to join KPMG in the U.K. and Germany as part of the merger which will create Europe's largest accountancy firm.

KPMG Forensic has recruited Mark Daws as a director in its anti-money laundering practice. Mark joins from PricewaterhouseCoopers.

A number of barriers remain in the expansion of the Islamic finance industry, including a lack of qualified Islamic bankers, weaknesses in financial reporting and transparency, and the issue of regulatory capital according to a KPMG survey conducted by the Economic Intelligence Unit ('EIU').

- Deadline for registration for the "Offshore Disclosure Facility" (ODF) is 22 June
- HMRC poised to pounce on those who do not register
- Trying to hide in the crowd is not an option - HMRC will come after you eventually Despite having received letters from their banks telling them that their details have been passed to HMRC, hundreds of thousands of people with offshore interests have so far failed to register for the ODF.

Education should be the number one priority for government and the mayor, the capital's business leaders believe, citing increasing skills shortages as the biggest inhibitor to their firms' growth.

- UK retail sales rose 1.8% on a like-for-like basis, compared with May 2006, when sales were up 3.6%. May's growth was the weakest since the 0.5% reported in November 2006 and was below the average for 2006 as a whole.
- The three-month trend rate of growth fell to 2.8% from 3.3% in April, for like-for-like sales, and to 5.0% from 5.5% for total sales, reflecting the continuing growth of retail space.
- Clothing and footwear sales fell back sharply as the weather worsened after a warm April. DIY and gardening also suffered from the cold and rain, and big-ticket purchases continued to disappoint. Smaller homewares, toiletries and cosmetics held up well, but food sales were less good than earlier in the year.
- Consumer confidence remained weak, reflected in more caution about making major purchases.

In advance of publishing its full annual survey of executive compensation trends among the FTSE350 companies this autumn, KPMG has analysed 53 FTSE100 companies with December 2006 or January 2007 year ends to gauge the most up to date trends in board remuneration in a research note titled "Is pay racing away again?".

Following the Leeds United creditors meetings that have taken place on Friday 1 June and Monday 4 June, the Administrators of Leeds United Association Football Club Limited (The) can confirm the result of the vote on the CVA (company voluntary arrangement) proposal to sell the Club to a newly formed company, Leeds United Football Club Ltd.

A new report from KPMG has found that financial services firms in both the UK and India are experiencing difficulties recruiting the right people with the right skills, and that a "soft skills gap" is making itself increasingly apparent.

Timothy P. Flynn, 50, has been elected chairman of KPMG International for a four-year term, effective October 1, 2007. He succeeds Sir Michael Rake, who is retiring from KPMG - and will become the next chairman of BT Group plc.

- Optimism amongst UK businesses at highest level since 2004
- Over half feel the economy is on an upward curve
- Three quarters believe that UK

businesses are competitive within Europe

Confidence and optimism amongst UK businesses is on the up according to the latest survey by KPMG.

Most companies are ill-prepared to investigate cross-border fraud & misconduct, says KPMG study

A report launched today by KPMG International reveals that the unprecedented spate of global power industry transactions is likely to continue.

The latest quarterly CIPD/KPMG Labour Market Outlook survey finds that two thirds of UK employers believe that the Government is right to prioritise basic skills training.

The Joint Administrators of Leeds United - Richard Fleming, Mark Firmin and Howard Smith, of KPMG Restructuring - have advised creditors of the Club that the creditors meetings will be held at Leeds United, commencing at noon on Friday 1 June 2007

As BT promotes its new digital TV service BT Vision and the Telecoms industry increasingly moves in to the media space, Clare Patterson, Senior Manager within KPMG's Information, Communication and Entertainment practice, comments on the challenges of Internet Protocol Television (IPTV).

KPMG research finds less than half believe MPBR will deliver consumer benefits

KPMG LLP, the UK member firm of KPMG International, has announced the appointment of 25 new partners.

SMEs are still missing out on valuable research and development tax credits, despite efforts from the tax community to spread the word and actively encourage them to apply, according to KPMG's latest survey of middle market companies.

- Number of people entering IVAs reaches 13,233
- Personal insolvencies show a rise of 23% on a year ago, according to latest Insolvency Service figures
- Possible interest rate rise next week could force more individuals over the edge
- KPMG predicts a record number of personal insolvencies of more than 130,000 in 2007

Figures released today by the Insolvency Service show a record number of personal insolvencies in the UK.

Richard Fleming, Mark Firmin and Howard Smith, of KPMG Restructuring, were today appointed administrators of Leeds United Association Football Club Limited at the request of the Club's directors.

KPMG awarded in FT Best Workplaces Survey

The publication by the International Accounting Standards Board ('IASB') of its Discussion Paper on Phase II on insurance contracts* was today welcomed by KPMG.

The failure of direct and indirect tax regimes to proactively address the seismic shifts taking place in the media sector, may discourage development in this critically important arm of the EU economy, according to professional services firm, KPMG.

The UK's independent TV production sector is growing strongly, according to the Independent Production Census, launched today.

The flexible working programme operated by KPMG among its 10,300 people in the UK has received a top workplace award for gender equality, diversity and inclusion.

Most PFI contracts are making money and delivering profits, is one of the major messages of the survey of 93 private sector contract managers undertaken by KPMG,

Financial organisations and public sector most likely to be exposed

Each extra year of expected lifetime costs UK private sector £15 billion

Leading UK finance directors have named KPMG the country's top 'Big Four' auditor for the third year in a row

- International KPMG study shows over half of company fraudsters commit twenty or more frauds
- Two thirds of fraudsters carry on for between one and five years before they are caught
- Weak internal controls help them get away with it
- 'Whistleblowing' is the most common way of frauds being detected

- UK banks forced to disclose offshore bank account information to HMRC
- HMRC unveils Offshore Disclosure Facility for those with undeclared liabilities arising from offshore accounts - penalties of just 10 per cent guaranteed
- Small print reveals that the same limited 10 per cent penalty is available to all taxpayers with any undisclosed tax liabilities - not just those with offshore accounts - provided they disclose within the same specific time limits
- KPMG is concerned that the timetable may be too tight for some to take advantage of the offer. Urgent action is required
- KPMG launches helpline and website for anyone who has concerns: 0800 970 9690, www.kpmg.co.uk/offshore, email ukfmtaxinvestigations@kpmg.co.uk

- Highlights include buyouts of a string of household names such as retailers Fat Face, Floors-2-Go and Jimmy Choo
- KPMG research shows 45 completed deals in first quarter of 2007 with a total value of £5.1 billion
- Buoyant first quarter suggests 2007 will see another record level of MBO activity

According to estimates from KPMG's Private Equity Group (which tracks UK buyouts with value over £10 million), the value of deals in the first quarter of 2007 reached £5.1 billion

KPMG appoints Head of Economics, Forensic

- Companies listing on main London market raise £3.8 billion in first quarter of 2007 - up from £3.5 billion in same period last year
- Highlights include flotation of Sports Direct retail empire, 3i infrastructure fund and Brevan Howard - the first hedge fund to list on the main market
- Number of IPO's on AIM falls but strong demand to list from overseas companies remains

Research by KPMG's Capital Markets group shows that despite the recent jitters in global equity markets, for companies wanting to raise funds from investors, enthusiasm for a stock market listing remains as strong as ever.

Myles Halley and Richard Hill of KPMG, the joint administrative receivers of Clares Merchandise Handling Equipment Ltd, have today announced the closure of the business in Wells, Somerset.

74 respondents representing a range of FTSE350 and equivalent private companies were surveyed by YouGov on behalf of KPMG LLP (UK) on March 22 and 23 2007 following the Chancellor's Budget on 21 March 2007.

The joint administrators David Crawshaw and Jonathan Pope have announced the successful sale of the business and assets of Dansco Dairy Products Ltd to Saputo Inc, based in Montreal, Canada.

Paul Flint and Brian Green from KPMG Restructuring in Manchester have been appointed as administrators to Stadex Industries Limited, the North Wales-based manufacturer of adhesive, starch and foam fabric products

Commenting on the Budget, Andrew Smith, chief economist at KPMG, said

David Woodward, head of capital allowances, KPMG commented

Budget 2007 - Opportunity missed when it comes to being green

Following the budget announcement today that online gaming companies will pay a rate of 15 percent remote gaming duty, Mark Summerfield, Head of Gaming at KPMG comments

Tom McGinness, head of middle market tax, KPMG comments on today's budget

Commenting on the Chancellor's announcements enhancing R&D tax relief, David O'Keeffe, R&D tax partner at KPMG, said

Carolyn Steppler, Director, Private Clients at KPMG said

When does a cut in income tax not result in paying less tax? When it is offset by other increases in income tax and National Insurance, according to Ronnie McCombe, partner in KPMG's People Services:

Carolyn Steppler, Director, Private Clients at KPMG commented

David Woodward, head of capital allowances at KPMG comments on today's Budget

Carolyn Steppler, Director, Private Clients at KPMG commented

David Woodward, head of capital allowances, KPMG comments on the changes announced in today's budget

The review of links with business published in November 2006 set out 14 commitments aimed at delivering a more responsive tax administration, and a better relationship between HMRC and business.

Carolyn Steppler, Director, Private Clients at KPMG commented

In response to pressure from the European courts and the Parliamentary Ombudsman, Gordon Brown backdated the pension lifeboat (Financial Assistance Scheme) today...

Commenting on the Budget today, Helen Dickinson, a partner at KPMG, said

What business was expecting to see today were three things: a more competitive tax system, less clutter and more certainty. What did it get?

Chris Nicholson, KPMG's Head of Public Sector, comments

The UK TV production industry has today received a welcome reduction in red tape and administrative burden from HMRC.

The alternative investment industry is at a turning point, according to Tony Rocker, head of KPMG's new Alternative Investment Group. He comments: "The demand for assets and investment opportunities means the barriers between traditionally separate sectors are breaking down. Hedge funds and private equity groups are increasingly looking at investing in physical assets such as real estate and infrastructure. Both these sectors are experiencing tremendous inflows of capital from institutional investors seeking investment performance."

Chancellor Gordon Brown could take the opportunity presented by what is likely to be his final budget to win voter approval by making favourable changes to the taxation of individuals according to the private client team at KPMG in the UK.

New research by KPMG has found that around half of small and medium-sized companies are not extracting the value that they could from their audit.

A "creeping conservatism" in tax matters is overtaking boards of directors around the world in reaction to requests from regulators, investors and pressure groups for more and better information on tax policy.

- ECJ rules that UK thin capitalisation rules restrict "Freedom of establishment" principle
- However, rules justified in the context of "wholly artificial arrangements" entered into "for tax reasons alone"
- Decision likely to lead to questions over whether UK-UK transfer rules are necessary
- Decision reaffirms developing principle of the ECJ limiting the articles under which rules can be challenged.

Dearth of qualified contractors and rising costs of construction pose greatest risk to the success of planned projects

Almost a third of European IT managers have had unsatisfactory experiences with suppliers outside Europe, and over 40 percent believe European suppliers retain the competitive edge in IT innovation and technical excellence, according to a survey by professional services organization KPMG International.

David Crawshaw and Myles Halley of KPMG Restructuring have been appointed joint administrators of retail chain The Toyworld Group Ltd.

KPMG among UK's top three best big employers - three years in succession

Paul Dumbell and Brian Green from KPMG Restructuring in Manchester have been appointed as administrators to Darcy Industries Limited, a manufacturer of cleaning, DIY and decorative products.

Myles Halley and Richard Hill of KPMG Restructuring, the administrative receivers of Clares Retail Equipment Ltd, have today announced a further 49 redundancies at the company's Swindon factory.

KPMG's European Hedge Fund team have been named 2007 Best Provider of Transaction and Advisory Services at the inaugural The Hedge Fund Journal Awards held in London last night. KPMG was praised for "its outstanding transactions work that sets it clearly apart from the other major firms."

KPMG has today announced the appointment of Mel Egglenton as Office Senior Partner in Birmingham.

Clares Retail Equipment Ltd (in administrative receivership): update

February's Report on Jobs survey signalled an intensification of pay pressures, driven by continued strong growth of demand for staff and shortages of skilled candidates. Meanwhile, further robust increases in permanent and temporary staff employment were recorded.

UK retail sales were up 3.3%% on a like-for-like basis, compared with February 2006, when sales had risen only 0.6%.

Mark Firmin and Howard Smith of KPMG Restructuring were appointed as joint administrators of retail chain Geo. A. Williams & Son Limited by the company's directors on 2 March 2007.

A diverse range of factors including the strong profit growth in the wholesale, international banking, wealth management and investment banking markets has driven UK banks' growth says KPMG's UK Financial Institutions Performance Survey which compares the published annual 2006 results for HBOS, RBS, Lloyds TSB and Barclays. It considers the banks' key performance indicators which include profitability, margin, cost/income ratio and asset quality, together with an assessment of their asset management and insurance arms.

Large numbers of business around the world are unable to quantify properly the benefits which their outsourcing arrangements bring them, claims a survey out today.

Many corporate sellers feel they are not making the most of what are undoubtedly benign market conditions, and are failing to extract maximum value from the disposal process.

As the M&A boom heads towards its peak, a divergence of opinion on prospects for 2007 is emerging between private equity houses and the corporate sector. Private equity is less enthusiastic than the corporate sector about the prospects for European mid-market M&A activity over the next six months, according to KPMG International's European Mid-Market M&A Outlook.

A new survey produced by KPMG in Germany has estimated that non-life insurance liabilities in run-off* in German speaking countries exceed €66.5 billion (£44.8 billion).

Despite the explosive growth of new media in recent years, television and newspapers remain the primary sources of news across all age groups globally, according to a survey by KPMG International.

Sir Michael Rake, Chairman of KPMG International, has been appointed as the next chairman of BT Group plc. He will succeed Sir Christopher Bland in September 2007.

The joint administrators of Chiltern Invadex Ltd are pleased to announce a successful sale of the firm's business and assets to a subsidiary of the Powertronics Group.

More profitable firms have worst cost control, says KPMG survey

A lack of ambition is blighting financial services companies' cost cutting efforts around the world, according to a new survey. Research commissioned by professional services firm KPMG found that almost two-thirds of companies set themselves cost reduction targets of no more than 3 percent per year. Even these limited cost savings are proving difficult to achieve, with only a disappointing 13 percent of respondents in the sector actually reaching or exceeding their targets.

Corporates and employment agencies potentially liable for workers' unpaid tax under draft legislation unveiled today

Draft legislation for tax changes to "Managed Services Companies" published today and expected to yield Treasury up to £350m per annum

Proposed rules would enable HMRC to pursue third parties for debts arising from failure to comply with new tax rules

Employment agencies and corporates engaging staff from Managed Services Companies will need to conduct rigorous due diligence to mitigate risk

January's Report on Jobs survey signalled that growth of demand for staff strengthened to a twenty-seven month high, underpinning further robust increases in permanent and temporary staff appointments, as well as maintaining substantial inflationary pressure on workers' pay.

UK retail sales were up 3.1% on a like-for-like basis, compared with January 2006, when sales had risen only 0.2% after a strong Christmas.

The three-month trend rate of growth edged up to 2.1% from 1.9% in December, for like-for-like sales, and to 4.1% from 4.0% for total sales, reflecting the continued growth of retail space.

Food sales were the strongest since July's heatwave-driven growth. Clothing sales slowed, despite heavy discounting, and furniture fell further below the levels reported this time last year. Home accessories, electricals and DIY showed good gains for some, but were often discount-driven.

Clearance sales achieved strong growth but often at the expense of margins. Consumer confidence has weakened since Christmas and discounts are still a big driver of sales.

Kevin Mawer, a specialist in investigating fraud in insolvency cases, has joined KPMG Forensic as a director. He joins from Grant Thornton.

KPMG research suggests 2007 will see value of UK MBOs top £30 billion for the first time

This follows another record year for mid-sized firms

Level of buyout activity reflects rise of 'club' deals

Insolvency figures released today show a record number of personal insolvencies in the UK.

But gaps remain in laying down specific rules for implementation

The Financial Services Authority ('FSA') was one of the first of the European regulators to transpose the requirements of the Markets in Financial Instruments Directive ('MiFID') into the UK legal and regulatory requirements, ahead of today's deadline for individual Member State transposition.

Richard Fleming and Myles Halley of KPMG Restructuring have been appointed joint administrators of Morley-based Oakdale Bakeries.

- Organised gang frauds double in second half of 2006
- 40 percent of fraud (£350m) committed by managers
- Government and investors the biggest victims

- Over £50m of fraud in 2006
- Almost treble 2005's total of £18m
- Highest level since research began

Four global trends are combining to force companies to improve the management of their tax functions, or face unexpected financial and reputational penalties, said Loughlin Hickey, Head of KPMG's Global Tax practice.

KPMG Forensic has appointed David Hicks as its new Head of Forensic Insurance. David joins from Deloitte & Touche, where he was a senior member of their Insurance practice.

KPMG Forensic has appointed David Hicks as its new Head of Forensic Insurance. David joins from Deloitte & Touche, where he was a senior member of their Insurance practice.

The professional services firm KPMG LLP has linked with Transport for London in a new environmental scheme aimed at reducing amounts of car travel by its staff and partners.

Blair Nimmo and Tony Friar of KPMG Restructuring were appointed Joint Provisional Liquidators of One Plus: One Parent Families on Monday 22 January 2007 following a petition by the directors to the Court of Session.

Brian Green and Paul Flint from KPMG Corporate Restructuring in Manchester have been appointed as administrators to RBA Plastics Limited, an injection moulding manufacturer and supplier to some of the UK's leading automotive and domestic appliance manufacturers.

More than half the respondents (56 per cent) to a KPMG actuarial survey consider their embedded value* ('EV') results more important that their principal IFRS (international financial reporting standards) results. In addition, 92 per cent of respondents believe that analysts place as much or more emphasis on EV than on IFRS results.

Former Ernst and Young tax partner joins KPMG's Information, Communication and Entertainment practice

UK retailers deserve a pat on the back for working so hard to protect their margins over the Christmas trading period, claims the KPMG / SPSL Retail Think Tank (RTT).

Rachel Campbell, Head of People Management and also a Board Member for KPMG's U.K. member firm, has been nominated by the World Economic Forum as a 'Young Global Leader'.

London has been ranked top European market in revenue per available room (RevPAR) for 2006, according to data presented by professional services firm KPMG and global benchmarking provider The Bench.

With the Fraud Act becoming effective from Monday 15 January, KPMG Forensic has warned any prospective fraudsters that the Act is likely to lead to a greater number of successful prosecutions.

Mark Orton and Allan Graham from KPMG's restructuring practice have concluded a sale of the business of Amtrak Express Parcels Limited following their appointment as administrators on 13 January 2007. The business has been sold to Netfold Limited, which will trade under the name Amtrak.

Professional services firm KPMG has been ranked among the ten best employers for gay and lesbian people in Stonewall's Workplace Equality Index for 2007.

December's Report on Jobs survey signalled that growth of permanent staff placements accelerated to a thirty-three month high in December, while temp billings rose at the sharpest rate for four months. Demand for staff continued to strengthen, driving further robust inflation of wages and salaries.

KPMG Forensic has recruited Jim Gee, the Department of Health's Director of Counter Fraud Services, to join its expanding practice.

BT has announced it expects to pass 10m broadband connections this week and Vodafone is to begin offering a branded broadband service nationwide from next week.

Facing overcapacity issues and financial underperformance, automotive executives expect a continuing industry shakeout with some companies facing bankruptcy and others seeking to merge or form alliances over the next five years, says a survey out today.

The Sports Utility Vehicle (SUV) - or 4x4 - sector appears to have become the primary casualty of high oil prices and a hardening consumer desire to purchase more fuel efficient and environmentally friendly cars.

The Chairman of KPMG International, Michael Rake, has been knighted in the New Year's honours list for services to the accountancy profession.