A market cap is the quickest way to inject some competition into audit March 7, 2019 As you read this, the Kingman review, the Competition and Markets Authority review, the Brydon review, and the Business, Energy and Industrial Strategy Select Committee are all scrutinising the audit profession following a series of high-profile scandals. Failures such as Carillion, BHS, and Patisserie Valerie present very different problems, but each case rightly led to [...]
Top Interserve shareholder threatens to sue outsourcer over ‘terrible’ rescue deal February 27, 2019 Interserve's hopes of appeasing rebel shareholder Coltrane Asset Management with an amended rescue deal have been dashed, with the hedge fund instead threatening to start legal proceedings against the firm. As it announced its full-year results, the outsourcing giant this morning updated its rescue refinancing deal, giving shareholders five per cent of its total value, up [...]
Financial Reporting Council extends probe into Carillion’s accounts February 26, 2019 Britain’s accounting watchdog will look even further into the past in its investigation of the audit of failed outsourcing giant Carillion. For the first time the Financial Reporting Council’s (FRC) probe will stretch to work done in 2013 – but a spokesperson declined to say why this was. Read more: KPMG boss confident in Carillion [...]
Serco seeks to capitalise on Brexit contract chaos as financial turnaround continues February 21, 2019 Outsourcing giant Serco said it could benefit from Brexit in the coming months if the government “needs help quickly,” raising its sales forecast for the coming year. "If we’re going to take back control, we’re going to need people to do the taking-back and the controlling,” chief executive Rupert Soames told City A.M.. “The government [...]
Government to take on more risk on public contracts to protect outsourcers, says minister February 20, 2019 Private outsourcing firms carrying out public services will be exposed to less risk when taking on government contracts in future, the Cabinet Office (CO) has said. The department today published a new set of guidelines for how the government should procure public services, a process which has increasingly come under fire this year after the [...]
Interserve could face £66m hit if shareholders reject rescue deal February 14, 2019 Debt-stricken outsourcer Interserve may have to stump up another £66m if its largest shareholder triumphs in a plan to thwart a rescue deal struck last week. The emergency refinancing package, designed to avoid it facing the same fate as Carillion, sparked ire among at least one-third of its shareholders, because it proposed all but wiping [...]
Former minister criticises Amber Rudd’s plan to jail bosses who mismanage pension schemes February 10, 2019 A former pensions minister has criticised Amber Rudd’s plan to toughen up laws governing those in charge of employee pensions in the wake of recent mismanagement scandals at BHS and Carillion. Company bosses could be locked up for as long as seven years if they don’t manage employee pension schemes properly, according to Work and [...]
Big Four accountants push back against breakup proposals February 7, 2019 The Big Four accountancy firms have fired back at the competition regulator’s proposal to break-up their UK operations. In their responses to the Competition and Markets Authority’s (CMA) outlines for shaking up the audit market, Deloitte, EY, KPMG and PwC all resisted a suggested split. David Barnes, managing director for public policy at Deloitte UK, [...]
Interserve directors face being pushed out as rescue deal finally surfaces February 6, 2019 Interserve shareholders have launched a controversial bid to oust eight senior directors after the firm announced the details of a rescue deal designed to avoid it facing the same fate as Carillion. After nearly two months of waiting, the struggling outsourcer this morning published details of the deleveraging plan designed to relieve the majority of [...]
Struggling outsourcer Interserve approaching finalised rescue refinancing deal with lenders February 3, 2019 Chiefs at debt-stricken outsourcer Interserve are nearing a rescue refinancing deal with the firm’s lenders to keep its head above water. The public sector outsourcing giant, which has been struggling with more than £600m debt, is due to announce it has reached an agreement with its banks in the next week, according to reports. Read [...]