EY is expected to Replace KPMG as New Auditor of Aston Martin
EY has replaced KPMG as new auditor of luxury sports cars manufacturer, Aston Martin, after KPMG refused to reapply for tender process less than 3 months after the company got listed on the Stock Exchange.
EY is expected to replace KPMG as auditor of Aston Martin for the fiscal year ending December 31, 2019 as the company announced its’ intention to propose shareholders, the appointment of EY as its’ new auditor at the company’s forthcoming annual general meeting.
The decision has been taken after a competitive tender process which was conducted in the supervision of the company’s audit and risk committee.
KPMG has been replaced by EY as auditor of Aston Martin after remaining 12 years in the position. KPMG was appointed as auditor of the company in the year 2007 and also helped the group in the IPO last year.
Chair of the audit and risk committee, Richard Solomons, has said that he would like to thank KPMG for their services as auditor of Aston Martin. He also said that we are looking forward towards working with EY in the future subject to approval by shareholders at the company’s next AGM.
As per the company’s 2017 annual accounts, KPMG received £115,000 against audit services in the year 2017, compared to £80,000 which it received in the year 2016. The firm also received £665,000 against all other services in 2017, up from £365,000 in 2016. This increase in fee is due to KPMG helping the company with its initial public offering (IPO) Prospectus.
On October 8, 2018, Aston Martin started trading on the FTSE 250 under ‘AML’.
The company published its first results after going public in October, the company reported before tax loss of £68m, compared with profits of £85m in the year 2017, causing its’ shares to fall by 18%.
Aston Martin is expected to set aside around £30m as part of its planning for a no-deal Brexit.
Aston Martin Lagonda president, Andy Palmer, has said that he is confident that the company would show growth in 2019.