Ladbrokes appoints PwC as new auditor
UK bookmaker switches from Ernst & Young to Big Four accountancy rival after putting contract out to tender
Ladbrokes has switched auditing companies, moving from Ernst & Young to PricewaterhouseCoopers following a two-month tender process.
The appointment, which is subject to shareholder approval, will begin in the 2014 financial year and follows guidance from the UK Competition Commission designed to break up the dominance of the Big Four auditors.
“The decision was taken following a rigorous tender process and recommendation from the Audit Committee. The tender process was initiated in September 2013 as part of an on-going emphasis on good corporate governance and best practice,” a Ladbrokes’ statement read.
The Competition Commission recently held a two-year inquiry into the Big Four accountancy dominance, prompting a record number of auditing contracts being put out to tender in the past year.
Of the companies that comprise the FTSE 250, the Big Four collectively audit 240 of them while also auditing all but one of the FTSE 100.
The appointment at Ladbrokes comes as the UK bookmaker is looking to turnaround its struggling egaming business following three profit warnings in 2013, the most recent of which caused shares to fall by 9%.
Ladbrokes responded by reiterating its confidence in its software integration deal with Playtech, the effects of which it expects to be felt next year, while chief executive Richard Glynn is reported to have been given until next summer to turn the company’s fortunes around.