KPMG to replace Deloitte at petrol forecourt giant
15 Oct 2020
Deloitte has resigned as auditor to EG Group, the company set up by the billionaire Issa brothers who have also recently acquired supermarket giant Asda, and is to be replaced by KPMG
15 Oct 2020
EG Group operates a chain of petrol stations in the UK, Europe, Australia and the US and was founded by Mohsin and Zuber from Blackburn, who were both awarded a CBE for services to business and charity in the Queen’s birthday honours list this year.
The petrol station business has been growing rapidly in recent years and, separately, the Issas have also paid £6.8bn to buy Asda from its US owner Walmart.
The company has recently told its bondholders that KPMG had been appointed as its auditor after Deloitte resigned with ‘immediate effect’, according to the Financial Times.
Deloitte had audited EG Group for four years, and the 2019 annual report, published at the end of July, made no mention of plans to put the audit out to tender. It stated instead that Deloitte had been deemed to be re-appointed and would therefore continue.
EG Group said in a statement: ‘As in previous years, Deloitte signed a clean audit for EG Group’s 2019 financial statements, and there have been no disagreements on any auditing or accounting matters.
‘We are pleased to be working with KPMG going forward, and remain committed to making continued progress with our internal processes, controls and governance.’
EG Group reported revenue in excess of €20bn last year. Deloitte’s fees for audit services were €5.4m, up from €1.9m the previous year. The firm was also paid €1.3m for non-audit services.
The company’s annual report noted that the finance function had been expanded further during the year ‘to reflect the increased scale of the organisation’.
The group introduced an internal audit team in the first quarter of 2020 and said there is a plan in place to further enhance the internal controls.
Neither Deloitte nor KPMG has issued a statement.