Although PayPoint noted it would not have to seek a new auditor until the year ending 31 March 2025 its audit committee decided, given the Revised Ethical Standard published by the Financial Reporting Council (FRC) in 2016, to put the audit out to tender in order to avoid conflict situations ‘pertaining to provision of non-audit services which could arise in future’.

Deloitte was not asked to participate in the tender process.

The FRC’s Revised Ethical Standard includes a cap of 70% on fees for non-audit services, when compared to a three-year history of statutory audit fees.

Overall, in the year to 31 March 2017, the audit was worth £675,000 to Deloitte, split between £190,000 for the audit itself, along with £485,000 for non-audit services. That was down on 2016’s numbers, when the firm took £849,000, made up of £166,000 for its audit and £683,000 in non-audit services.

In a statement to market, PayPoint said: ‘The company announces that, following the conclusion of a formal tender process led by the Company's audit committee, the board of the company has approved the appointment of KPMG LLP as the company's auditor with immediate effect. This appointment remains subject to approval by shareholders at the next annual general meeting of the company.

‘Deloitte LLP (Deloitte) has resigned as the company’s auditor and has provided a statement of reasons relating to its resignation, in accordance with Section 519 of the Companies Act 2006. A copy of Deloitte’s statement of reasons is being sent to shareholders for information only, as required by Section 520(2) of the Companies Act 2006 and will shortly be available to view on the National Storage Mechanism.’

PayPoint’s annual report for 2017 is here.