FTSE-listed Ferrexpo, a Swiss-based iron-ore producer operating in Ukraine, is to change auditors and has appointed Deloitte to succeed current incumbent EY, who have handled the audit since 2007
In a statement, Ferrexpo said: ‘Following the completion of a formal audit tender process conducted in accordance with the relevant requirements and led by the company's audit committee, the board has approved the appointment of Deloitte as the company's auditor for the financial year commencing 1 January 2017.’
EY was appointed as auditors to the company in June 2007 prior to the listing in London, and the company’s audit partner rotated in 2012. Under EU Audit Regulation and Directive (ARD) regulations which came into force in June 2016, the company had to put the external audit contract out to competitive tender in 2016 (for the audit of the 2017 accounts).
The appointment remains subject to approval by shareholders at the annual general meeting to be held in May 2017. The company's current auditor, EY, will conduct the audit for the year ending 31 December 2016.
According to its 2015 annual report, Ferrexpo paid EY a total of $1.58m (£1.26m) in fees, of which $1,564,000 related to audit and advisory services and $23,000 for non audit services.
The report noted: ‘Non-audit services totalling $681,000 (2014: $247,000) in relation to assurance services for liability management activities of the group have been capitalised as prepaid arrangement fees.’
