EY resigns as MJ Hudson’s auditor over ‘lost trust and confidence’ in the investment consultancy company
- EY told MJ Hudson late on Friday that it was resigning ‘with immediate effect’
- It said they had ‘lost trust and confidence in the Company’s management and those charged with governance’
Troubled investment consultancy MJ Hudson has revealed its auditor EY has quit having ‘lost lost trust and confidence’ in the company’s management.
EY’s resignation deepens the crisis at MJ Hudson, which in October announced that it was ‘engaged in discussions with its auditors’ about potential adjustments to its 2022 accounts.
Then in December the group suspended its finance boss and trading of the company’s shares after uncovering more irregularities with the audit of its accounts for 2022.
MJ Hudson is continuing to work with an external firm to complete its 2022 accounts
Today MJ Hudson said it had received notice from its auditor EY late on Friday last week that it was resigning ‘with immediate effect’.
It added that EY’s letter of resignation stated it was ‘ceasing to hold office because 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’.
MJ Hudson, which provides advisory, outsourcing and data services to asset managers, said it was continuing to work with an external accounting and financial services firm to try complete its 2022 accounts.
‘The Board believes that this process will take some time to finalise and, during this time, the Board will commence the search for a new auditor,’ it added.
MJ Hudson has also hired advisors to consult on a possible sale of one or more of its divisions.
It said it has received ‘a number of encouraging initial bids’ for all of the business units, as well as bids for individual divisions from ‘credible potential acquirers’.
‘The process will now enter a confirmatory diligence phase before the Board will seek best and final offers. Further announcements will be made in due course.’
MJ Hudson, founded by chief executive Matthew Hudson in 2010, appointed Ran Oren as its interim chief financial officer last month after suspending CFO Peter Connell in December amid the audit concerns.
MJ Hudson shares, which remain suspended, have plunged 78 per cent as of their last close on December 9, since their 2019 market debut at 60p.