KPMG ends PwC's 11-year audit reign at Premier Foods
KPMG wins Premier Foods audit tender from PwC
PREMIER FOODS – owner of the Mr Kipling, Bisto and Hovis brands – has appointed KPMG as auditor for the 2015/16 financial year.
The food giant first mooted the prospect of change in its 2014/15 annual report, when the audit committee decided to undertake a formal audit tender process after the end of the PwC’s 11th set of financial statements.
The appointment of KPMG follows a recommendation to the board by the audit committee following the completion of a formal tender process.
Ian Krieger, chairman of audit committee, said: “We would like to thank PwC for their significant contribution as the company’s auditor since the company’s stock market listing in 2004 and look forward to working with KPMG going forward.”
Non-audit fees for the financial period were £567,500 – representing some 133% (2013: 71%) of the annual audit fee. Of this, £505,000 related to its capital refinancing plan. Total auditor remuneration was £900,000, of which some £400,000 was for the audit itself.
PwC had previously overseen Premier Foods’ IPO.
In its latest annual report, Premier said that the audit committee “is aware of, and sensitive to, investor body guidelines on non-audit fees” but “given the nature of work required in connection with the business turnaround, it was assessed that PwC were best placed to perform these additional services in view of their knowledge of the business, the time constraints in completing the work and the likely cost”.
