FTSE 250 listed high street bakery chain Greggs has announced a change of auditor with the appointment of RSM after decades using Big Four firm KPMG
RSM has appointed RSM as auditor from year end 2021, taking over from KPMG, which had been the auditor since 1984. The audit is currently worth £193,000, up from £165,000 last year.
In Gregg’ latest annual report, the audit committee reported that a range of firms was approached, including the Big Four, other than KPMG, and a number of mid-tier firms. Interested firms were subsequently asked to complete a detailed Request for Proposal and the audit committee shortlisted firms to be considered in a full tender process.
‘During the tender process, which of necessity was conducted entirely remotely, each shortlisted firm was invited to meet with the audit committee chair, chief executive, finance director and members of senior and operational management,’ the audit committee stated.
‘Following these meetings, formal tender documents were submitted and each firm presented their proposals. The firms were judged against objective criteria that had been determined in advance of the process and shared with the firms at that point.
‘Whilst it appreciated the quality of all proposals submitted by the shortlisted firms, the audit committee considered that the submission and team from RSM UK Audit LLP better met the predefined criteria it had set. It has therefore recommended to the board that RSM be appointed as auditor, subject to shareholder approval, for the 2021 financial year onwards’.
In the latest annual report, Greggs reported annual revenue of £811m, down 36% year on year due to reduced sales during the pandemic. The group has over 2,000 UK shops including 328 with franchise partners and plans to open further shops in 2021.