ROTORK, the FTSE 250 manufacturing business, has ended its long-standing audit relationship with KPMG, replacing the firm with Big Four rivals Deloitte.
KPMG and its predecessor firms have been Rotork’s auditors for over 50 years, during which time the contract had never been tendered to the market.
The company said that “in view of the extensive period” that KPMG had been auditor and pending EU regulation that requires large-listed companies to change their auditors every ten years, KPMG had not been invited to compete for the work.
KPMG was paid £588,000 in audit fees and expenses in 2013.
Deloitte has been appointed as the group’s statutory auditor and will undertake the 2014 interim review and full-year audit, the company said in a statement.
At the same time, the company also announced that Martin Lamb, the chief executive of IMI between 2001 and 2013, has been appointed as a member of the audit committee, while audit committee chair Ian King is stepping down to be replaced by Sally James, a former general counsel for UBS Investment Bank.