EY has resigned as auditor to the troubled investment consultancy MJ Hudson, saying it had ‘lost trust and confidence’ in management.
MJ Hudson, which advises clients about fund management, said the Big Four accounting giant had quit with immediate effect on Friday, less than 18 months after being appointed.
‘We have lost trust and confidence in the company’s management and those charged with governance, and in their ability, along with your finance team, to provide us with accurate and reliable information for audit,’ EY said in its resignation letter to MJ Hudson.
Lack of trust: MJ Hudson, which advises clients about fund management, said accounting giant EY had quit with immediate effect on Friday, less than 18 months after being appointed
Issues were first flagged in October, when the firm said it was ‘engaged in discussions with its auditors’ about potential changes to its accounts for the financial year ending June 2022.
Then in December the group suspended its finance boss Peter Connell and trading of the company’s shares after uncovering more irregularities in its audit.
Shares were suspended at 13.13p, leaving it with a market value of just £26.7million, down over £70million from its initial £97.6million valuation when it floated on London’s Aim in 2019.
The Jersey-registered firm said it was now trying to get ‘the necessary clarity’ to complete its accounts, which it said will ‘take some time to finalise’.
Founded by chief executive Matthew Hudson in 2010, the company’s major clients include FTSE 100 companies Abrdn and St James’s Place.
EY confirmed its highly unusual decision to quit the account, but declined to provide any more details.
