MJ Hudson auditor EY quits over 'lost trust' in management (updated)

MJ Hudson

13/02/2023 07:42

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      Auditors EY say they 'lost trust' in company - letter
    

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      Company receives interest for its units
    

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      To enter due diligence phase for the offers
    

  
 (Adds more details, background)
       Feb 13 (Reuters) - Britain's MJ Hudson Group  MJH.L 
said on Monday its auditors EY had resigned because they had
"lost trust" in management, deepening problems at the asset
management services firm.
    MJ Hudson, which provides advisory, outsourcing and data
services to asset managers, cut its profit forecast in October
after talks with auditors over how to recognise revenues for one
major contract and some costs included in adjusted core profit. 
    In December, it warned it would not be able to complete its
full-year audit in time due to continued discrepancies in its
finances. 
    "(EY) ...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," read the letter
from the auditors, which was published by MJ Hudson.
    EY, formerly Ernst & Young, did not immediately respond to a
request for comment.
    MJ Hudson, founded by chief executive Matthew Hudson in
2010, appointed Ran Oren as its interim chief financial officer
(CFO) last month after suspending CFO Peter Connell in December
amid the audit concerns. 
    The company, whose shares have also been suspended from
trading since December, said on Monday it continued to work with
an external accounting and financial services firm to help
complete its year end reporting, but did not name the firm. 
    MJ Hudson's shares have plunged 78%, as of their last close
on Dec. 9, since their 2019 market debut at 60 pence.
    The company, which has been considering the sale of some of
its units, said it had received a number of initial bids and
would start a due diligence phase to seek best and final offers.
 (Reporting by Sinchita Mitra in Bengaluru; Editing by Nivedita
Bhattacharjee and Mark Potter)
 ((Sinchita.Mitra@thomsonreuters.com;))