FTSE 250 pharmaceutical specialist to replace Deloitte for KPMG
FTSE 250 pharmaceutical specialist the Vectura Group, which supplies products for the treatment of lung disease, is to appoint KPMG as external auditor from the 2017 financial year, replacing incumbent Deloitte after a decade
Deloitte has been Vectura’s auditor since 2007 following its full listing on the London Stock Exchange. During that time, the audit has not been formally tendered.
In its 2016 annual report the company said a mandatory tender was expected to be required post the 2016/17 audit, because of new requirements arising from the EU audit directive and regulation.
A proposal to appoint KPMG will be made to shareholders at the 2017 annual general meeting being held on 25 May 2017.
In a statement to the stock exchange, Vectura said: ‘This proposal is the result of a competitive process undertaken by the Audit Committee, as anticipated in its report in the company’s annual report and accounts for the year ended 31 March 2016, concluding with a recommendation approved by the board.’
According to the annual report, Deloitte was paid a total of £677,000 in fees in 2016. Of this £95,000 related to audit fees, while £560,000 was for other services, largely relating to work performed as the reporting accountant to support the company’s merger with Skyepharma, which completed in June 2016.