11th May 2018 07:32
LONDON (Alliance News) - FTSE 250-listed construction products provider SIG PLC said Thursday that shareholders have voted against appointing Deloitte LLP as auditor of the company.
At the company's annual general meeting, 109.0 million votes were cast to re-appoint the accountancy firm, while 395.8 million votes were cast against it.
As a result, SIG said it will carrying out an EU Audit Regulation complaint audit tender for the role of external auditor as soon as possible, and Deloitte will finish the closing out and signing off process of SIG's subsidiary accounts for 2017.
In February, SIG conducted a review with auditors Deloitte and KPMG after a whistle-blower revealed accounting irregularities at the company's Distribution business, related to rebates and other potential recoveries from suppliers.
A number of these balances, it said, were overstated at the end of 2016, in some cases deliberately, resulting in an overstatement in profit for 2016 of up to GBP3.7 million, with up to GBP400,000 in "years" before 2016.
SIG's review also identified a GBP2.5 million profit overstatement for the first half of 2017.
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