News
Jessica Fino 28 Jul 2017 09:48am

Mitie shareholders revolt over Deloitte reappointment

Almost a third of shareholders at the troubled facilities management group have voted against the reappointment of Deloitte as auditor at the company’s annual general meeting

Mitie said that although the reappointment motion was passed, the company would be going ahead with the tender process to appoint a new auditor as planned during July, August and September 2017.

It followed last month’s announcement that it wanted to have a new auditor in place during the financial year ending 31 March 2018.

On Wednesday, 29.39% of its shareholders voted against the auditor’s reappointment, despite the 30-year audit relationship the companies have shared.

Mitie said in a statement it would announce a new external auditor in due course. It added it expects to appoint a new auditor in advance of the half-year results.

Deloitte declined to comment.

Last month’s decision to end its audit relationship with Deloitte followed an extremely challenging year for the business.

The company lost its high-profile chief executive Ruby-McGregor Smith and its chief financial officer Suzanne Baxter, made a number of profit warnings and had to write down more than £50m in profits following an accounting review by KPMG which found a number of “material errors”.

Deloitte has audited the FTSE 250 company, which employs some 52,000 people around the world, since it was first listed in 1987. This year its audit fee was £1.077m, up from £766,000 in 2016.

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