P&O Ferries has been dealt another blow as its long-time auditor has resigned. This marks the latest in a string of events, including the P&O Ferries auditor resignation. These events follow ongoing delays in financial reporting and lingering fallout from the mass dismissal of UK seafarers.
KPMG, which had audited the ferry operator since 2007, has officially stepped down from its role with immediate effect. The resignation was confirmed through regulatory filings. It comes as the company is significantly overdue in publishing its 2023 financial statements. This is due to the P&O Ferries auditor resignation. It only submitted its 2022 accounts late last year.
Sources close to the matter indicated that the decision to resign was made independently by KPMG. It was not related to the usual auditor rotation process required by some UK regulations. P&O Ferries is reported to have already selected a new auditor. However, the firm’s name has yet to be disclosed amidst the P&O Ferries auditor resignation.
A spokesperson for the company stated: “We thank KPMG for their services as our auditors. P&O Ferries is focused on filing our 2023 accounts as soon as possible after the P&O Ferries auditor resignation.”
The move raises fresh concerns about the company’s financial governance. Atul Shah, a professor of accounting and finance, remarked that the withdrawal of KPMG at this stage casts uncertainty over the status and integrity of the 2023 accounts. This follows the P&O Ferries auditor resignation.
Owned by Dubai-based logistics conglomerate DP World, P&O Ferries has faced sustained criticism. This follows its abrupt dismissal of nearly 800 UK-based seafarers by text message in 2022. The dismissed workers were replaced with lower-cost overseas workers. The action sparked political outrage and led to new UK laws aimed at protecting maritime jobs and wages.
Company chief executive Peter Hebblethwaite admitted at the time that trade unions had been deliberately bypassed in the process. This prompted legislative and reputational fallout. In response, the Labour Party introduced new measures aimed at safeguarding employment conditions within the UK maritime sector.
Compounding tensions, DP World, which also owns the London Gateway port, last year threatened to halt a £1 billion investment in the project. This happened after criticism of P&O’s conduct by government officials. Intervention from political leaders was required to stabilize relations and protect the development.
KPMG had been brought on board as auditor shortly after DP World acquired P&O for nearly £4 billion. The company’s 2022 accounts showed that P&O had received more than £400 million in financial support from its parent firm following the seafarer dismissals. The ferry operator stated that it would have likely collapsed if the lay-offs had not occurred when they did.
Although P&O now claims it is moving toward operational profitability, new labor laws in both the UK and France are expected to increase operating costs. These changes are designed to prevent companies from undercutting local labor. They aim to stop the hiring of cheaper international workers, a practice P&O has relied on heavily in recent years.
KPMG has declined to issue any public comment on its resignation.
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