Grafton Group ends 22-year audit relationship with KMPG
PwC will take up the Grafton appointment for the financial year ending 31 December 2016 and Mondi in 2017
PWC has ousted KPMG as building materials group Grafton’s auditor and Deloitte at paper and packaging giant Mondi Group.
The move ends KPMG’s 22-year audit relationship with Grafton which was worth £1.3m in 2014. Deloitte has audited Mondi since 2007 and prior to that as part of the Anglo American Group.
Grafton also announced that Roderick Ryan, the chairman of its audit and risk committee, would be stepping down from the board on 31 December 2015 after almost a decade as a non-executive director.
Ryan will be succeeded in the role by Paul Hampden Smith, who joined the board in August, and Annette Flynn, a board member since March 2011, as senior independent director.
Michael Chadwick, chairman of Grafton Group, commented: “Roddy has been a non-executive director of Grafton since 2006. He has made a very substantial contribution to the board especially during the difficult years of the financial crisis. His business experience and judgment have been of great benefit to the group.”
The group flagged in its 2014 annual report that it would carry out a competitive audit tender process during 2015 and following the recommendation by the audit and risk committee, the board appointed PwC, who will take up the appointment for the financial year ending 31 December 2016.
PwC has also wrested control of the audit of the Mondi Group from Deloitte.
Deloitte will carry out the audit of the paper and packaging giant’s accounts for the year ending 31 December 2016. PwC will then take over as auditor subject to approval by shareholders at its AGM in May 2017.