888 plays it safe with EY audit appointment
BDO loses contract after decade that included advising on gambling business’ IPO
ONLINE GAMBLING company 888 has appointed EY as auditor, ending a decade-long relationship with BDO.
The FTSE Small Cap-listed business announced the switch with effect from 30 June 2014, with EY taking responsibility for the company’s half-year results to that date. The appointment will be put to a vote at 888’s next annual general meeting.
BDO served as auditor to 888 for ten years and advised on its initial public offering (IPO) in October 2005. The decision to switch auditors was taken “in light of the changing regulatory environment”, the company said, and “is in line with emerging practice and institutional investor guidelines”.
Under the UK Corporate Governance Code, FTSE 350 companies must retender every ten years on a comply or explain basis.
“The board considers EY best positioned to provide audit services to the Company through a period of significant growth and expansion into regulated markets, especially the United States,” 888 added.
888 confirmed there were no matters in connection with BDO’s resignation to be brought to shareholders’ attention.