EY takes the wheel from KPMG on Aston Martin audit
Aston Martin has announced the appointment of EY as its auditor, after KPMG declined to reapply for tender less than three months after the company made its debut on the London Stock Exchange
6 Mar 2019
EY will take over the audit of Aston Martin Lagonda Global Holdings plc for the financial year ending 31 December 2019, subject to approval by the company’s shareholders at its annual general meeting.
Richard Solomons, chair of the audit and risk committee said: ‘I would like to thank KPMG for their service over the past 12 years as auditor to the Aston Martin Lagonda group since 2007 as well as their support for the IPO last year. Subject to shareholder approval at the AGM we look forward to working with EY in the future."
According to the company’s 2017 accounts, KPMG was paid £115,000 in audit fees in 2017, compared to £80,000 in 2016. The firm was paid £247,000 for non-audit services relating to tax in 2017 (2016: £92,000) and £418,000 for all other services, up from £273,00 in 2016. This jump in fee is due to KPMG preparing the company’s initial public offering (IPO) Prospectus.
On 8 October 2018, Aston Martin began trading on the FTSE 250 under ‘AML’.
Publishing its first results since it went public in October the company reported a pre-tax loss of £68m, compared with profits of £85m in 2017, causing shares to fall by 18%.
Aston Martin will also set aside up to £30m as part of its contingency planning for a no-deal Brexit.
Andy Palmer, Aston Martin Lagonda president and group chief executive, said he was confident that the company would grow in 2019. ‘Whilse we are mindful of the uncertain and more challenging external environment, particularly in the UK and Europe, we remain disciplined in our execution and maintain our guidance for financial year 2019, whilst also reconfirming our medium-term objectives,’ he said.
Report by Amy Austin