FTSE 250 engineering company Meggitt has decided to retain PwC as its auditor, a position the firm has held since 2003, following a competitive tender process which was conducted in advance of the mandatory rotation requirement
In its 2016 annual report, Meggitt said that under the current regulations, the audit committee was required to tender and rotate the external audit by 2023. However, the committee determined that as the audit had been with PwC since 2003 and was reaching the end of the current audit partner rotation period, it was appropriate and in the best interests of the company and shareholders to tender the audit for the 2018 financial year.
Meggitt has now announced the decision to retain PwC as auditor for the financial year commencing 1 January 2018. The appointment remains subject to approval by shareholders at the AGM to be held in 2018.
Colin Day, chair of the audit committee, said: ‘We indicated our intention to tender the audit in the company's 2016 annual report and have conducted a robust and comprehensive process which has led to the audit committee's recommendation to retain PwC.
‘I am pleased this recommendation has been accepted by the board and I would like to thank the other firms who took part in the tender. We look forward to continuing to work with PwC.’
According to the 2016 annual report and accounts, Meggitt paid PwC £2.1m in audit fees for the year.
Report by Pat Sweet
