P&O Ferries auditor jumps ship after ongoing accounting issues

P&O Ferries, the Dover-Calais operator owned by Dubai-based DP World, is facing new hurdles as it navigates ongoing financial and operational difficulties.

The company, which has already faced scrutiny over its controversial sacking of nearly 800 seafarers in 2022, has now lost its long-standing auditor, KPMG, which resigned after nearly two decades of service.

The resignation, detailed in a Companies House filing, follows a series of delays in P&O’s financial reporting, with the ferry company yet to release its 2023 financial statements.

P&O only managed to submit its 2022 accounts in December, contributing to mounting concerns about the company’s ability to meet regulatory expectations.

KPMG’s decision to part ways with P&O is reportedly unrelated to the standard audit rotation policy, as sources indicate that the departure was not planned as part of the company’s regular auditing cycle.

The firm has not commented on the reasons behind its resignation. Nevertheless, P&O Ferries has already appointed a replacement auditor, though the identity of the new firm has not been disclosed.

In a statement, a P&O spokesman expressed appreciation for KPMG’s long tenure, saying: “We thank KPMG for their services as our auditors. P&O Ferries is focused on filing our 2023 accounts as soon as possible.”

However, questions remain about the reasons behind KPMG’s exit, especially as the company continues to grapple with the financial fallout of its controversial decisions.

Financial strain has been a recurring theme for P&O Ferries, particularly following the 2022 decision to sack hundreds of UK-based workers via text message, replacing them with cheaper labour.

This move sparked a political backlash, prompting legislative changes in the UK to protect workers in the maritime sector.

Despite criticism, P&O maintains that the mass layoffs were necessary to ensure the company’s survival, as it faced mounting financial pressures.

P&O’s 2022 financial filings showed a significant reliance on DP World for financial support, with loans from the parent company rising to over £400 million.

The company has continued to turn to DP World for assistance, underscoring the ongoing financial instability that has plagued the ferry operator since the layoffs.

Despite these challenges, P&O Ferries asserts that it is “on the path to operational profitability.”

However, recent changes in UK and French regulations could further increase operational costs, particularly as the company seeks to navigate the complexities of employing seafarers from Asia, which could limit its cost-saving strategies.