BDO Stoy Hayward has snatched back the audit of engineering company Caparo Group from KPMG, four years after the Big Six firm won the contract in a competitive tender. Stoys had held the audit for the #750m turnover steel supplier for over 20 years from the early 1970s until 1992 when the profession witnessed a succession of low-priced audit wins.
The latest change of auditors followed a competitive pitch involving several firms. Caparo is privately owned by millionaire businessman Lord Paul, the first Asian to be created a peer, and has interests in the UK, US, Spain, Canada and India.
Michael Haan, the Stoys partner who will be responsible for the relationship with Caparo, commented: ‘Obviously we are delighted to be regaining the audit.
It was won after a competitive tender process and enables the firm to resume a relationship that we had enjoyed for over 20 years.’
Caparo declined to comment on why it had severed its links with KPMG after such a comparatively short period. But, in a prepared statement, company chief executive Ambra Paul, appeared to indicate that the Big Six firm’s style had not been as closely aligned to Caparo’s as the company would have liked.
Paul said: ‘Board colleagues and I are happy to reappoint BDO Stoy Hayward.
This move will allow us to rekindle a relationship which we enjoyed over many years. It also emphasises the importance of choosing advisers who understand our needs and can form a close working relationship with us.’
KPMG declined to comment on the loss of the audit work, which was managed from the firm’s Birmingham office. Stoys’ Nottingham office will take on the new work.