Gama Aviation flips auditor in switch to PwC
AIM-listed global aviation services company Gama Aviation plc has switched auditor, moving to a Big Four firm as it ends its audit engagement with mid-tier firm Grant Thornton after five years
30 May 2019
PwC will take over the as the company's auditor for the financial year ending 31 December 2019 in a decision approved by the board. The appointment will be subject to shareholder approval at the annual general meeting to be held on 27 June 2019.
Grant Thornton UK LLP, the company's current auditor had been in post since 2014, and has confirmed in an official deposited statement that it was not aware of any circumstances connected with their ceasing to hold office that need to be brought to the attention of the company's members or creditors. This is required under section 519 of Companies Act 2006, and a copy of the statement is available for any person entitled to receive a copy of the company's annual reports and financial statements.
Earlier this year a number of financial reporting irregularities were flagged by Gama Aviation and Deloitte was hired to review reporting methodology.
In a statement to the London Stock Exchange last month, Gama Aviation stated: ‘On 24 January 2019, the Group announced that the Board was conducting a thorough and full review of its financial reporting methodology and on 29 March 2019 the Group further announced that this work and further independent work undertaken by Deloitte LLP could affect the presentation of 2018 financial statements and 2017 comparatives. The Group confirms that its financial review is now complete and that the audited report and accounts presented [in the 2018 full year results] are in accordance with the improved reporting methodology and reflect the restatements to 2017 comparatives’.
The Deloitte report identified a number of reporting issues and concluded that it was necessary to re-classify certain balances within current liabilities in the December 2017 and June 2018 balance sheets due to issues around the accounting treatment of overpayments which led to restatement of the figures.
Grant Thornton earned £431,000 in audit fees for year end 2018 for the company and its subsidiaries according to the 2018 annual report and accounts.
Gama Aviation has a global operation split between two divisions, focusing on air and ground services, including aircraft management, special mission support and charter; and groundside provides aircraft maintenance services, and aircraft modification design and installation.
By Sara White