Hill & Smith ends 20-year audit relationship with KPMG
29 Jan 2020
FTSE 250 listed engineering services company Hill & Smith Holdings plc is planning to flip Big Four auditors with the appointment of EY
29 Jan 2020
Hill & Smith has confirmed that it will be ending its 20-year relationship with KPMG in a move to fellow audit giant EY. KPMG was first appointed as external auditor in 1999.
KPMG will continue in its role as external auditor to the group for the current year ending 31 December 2019. KPMG earned £1m in audit fees and £200,000 in non-audit services for year end 2018.
The appointment of EY follows a formal competitive tender process led by Hill & Smith’s audit committee and is subject to shareholder approval at the next annual general meeting in May.
The board has approved the proposed appointment of EY as its external auditor to take effect from, and including, the financial year ending 31 December 2020.
KPMG did not participate in the tender due to the length of its current appointment. Further disclosure on the formal competitive tender process conducted by the audit committee will be set out in the Group's 2019 annual report.
Mark Reckitt CA, chairman of the audit committee, said: ‘We would like to thank KPMG for its significant contribution as Hill & Smith's auditors over recent years. Subject to shareholder approval at the 2020 AGM, we look forward to working with EY in the future.’
Reckitt, a chartered accountant, is a non-executive director at Hill & Smith, and is also a member of the nomination and remuneration committees at Mitie Group and Cranswick. Previously he was group strategy director of Smiths Group plc from February 2011 to April 2014.
H&L operates internationally and specialises in production and engineering in the supply of infrastructure products and galvanising services to global markets.