Listed foundry Castings drops PwC for Mazars
28 Jan 2020
Top 10 firm Mazars has picked up the audit for AIM listed iron casting and machining group Castings plc which has flipped auditors from its Big Four incumbent
28 Jan 2020
Auditor PwC has resigned after three years handling the company’s audit following a competitive tender process. PwC was appointed in March 2017 as the group’s external auditors and had been reconfirmed after a previous audit tender in 2018.
Top 10 audit firm Mazars has taken over the audit for the financial year ending 31 March 2020 with effect from 24 January 2020. The company intends to put the appointment of Mazars as auditor to a vote of shareholders at the next annual general meeting.
PwC was paid audit fees of £99,000 for audit of the parent company and subsidiaries, according to Castings’ annual report for year end 31 March 2019.
As required by section 519 of the Companies Act 2006, PwC have deposited a statement with the company confirming that there are no circumstances in connection with its resignation as auditor that should be brought to the attention of shareholders stating that the reason for the resignation was the result of a tender process.
In a statement to the London Stock Exchange, the board said it ‘thanked PwC for its services and support over the past three years’.
The chair of the audit and risk committee is Alec Jones, who is a senior non-executive director at Castings and a PwC alumni. He retired as a partner from PwC in 2010 after 27 years at the firm.
Castings is an established iron casting and machining group based in the UK, supplying both the domestic and export markets with more than two thirds of its manufacturing exported. It reported group revenue of £150m in 2019, up from £133m the previous year with an increase in profit before exceptional items and income tax to £15.3m compared to £12.0m last year.
The group has over 1,200 employees and three trading operations including highly mechanised foundries in Brownhills, William spheroidal graphite iron casting production in Dronfield, and CNC Speedwell which is primarily focused on prismatic machining of iron and aluminium castings from its site in Brownhills.