Hill and Smith Holdings announced that it has formally ended its audit relationship with KPMG.
Following a formal process led by its audit committee, the board has now approved the proposed appointment of Ernst and Young as its next external auditor. EY’s role as auditor will take effect from the financial year ending 31 December 2020.
KPMG will continue in its role as external auditor for the current year ending 31 December 2019. The accountancy firm earned £1m in audit fees and £200k in non-audit services for the year ended 2018.
The group, which supplies infrastructure products to global markets, said the appointment of EY will be recommended to shareholders for approval at the group’s annual general meeting in May 2020.
In a statement, Hill and Smith said: “KPMG will continue in its role as external auditor to the Group for the current year ending 31 December 2019. KPMG did not participate in the tender due to the length of its current appointment.”
Mark Reckitt, 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.”