FTSE 250 company Saga, which provides holidays, insurance services and financial products for the over 50s market, has chosen KPMG to replace EY as its auditor
In a stock exchange announcement Saga said the move followed a formal tender process led by the audit committee. KPMG will take over as auditor for the financial year commencing 1 February 2017, subject to approval by shareholders at the annual general meeting to be held in June 2017.
EY was appointed as auditors of the principal trading companies within the Acromas group in September 2007. They were then appointed as auditors of the company on 24 September 2014 following its incorporation and insertion within the group prior to listing.
In the statement the board of Saga said it ‘extends its appreciation to EY for its services as auditor and confirms that there are no matters in connection with EY's prospective resignation as auditor following the 2016/17 audit that need to be brought to the attention of shareholders’.
According to the 2016 annual report, Saga paid EY a total of £1.4m in 2016, down from the £2m paid in 2015 which included additional costs relating to the company’s listing. This included £1.2m for auditing of the parent company, subsidiaries and prior year subsidiary financial statements, plus £200,000 for audit-related assurance services.