The auditor registered its resignation with Companies House on May 24
KPMG has announced it will resign as auditor of Lycamobile after it was “unable to determine whether adequate accounting records have been kept by the company”.
The auditor registered its resignation with Companies House on May 24, after a tenure of three years. It claims to have informally advise Lycamobile of its intention to resign on November 30, 2016, re-confirming in May 2017.
According to Lyca Group chief financial officer Michael Landau in a statement the group “gave formal notification to KPMG on April 24 2017” to terminate its position as auditor of Lycamobile UK.
“This decision was taken on the basis that we wished to rotate auditors to new auditors as is common place after several years,” added Landau.
Lycamobile is owned by Sri Lankan millionaire Allirajah Subaskaran (pictured). The MVNO piggybacks off the O2 network in the UK and has similar deals in 20 countries worldwide.
KPMG said in a statement it was not able to form a conclusive report on Lycamobile’s financials as it was “not able to obtain all the information and explanations from the company that we considered necessary for the purpose of our audit. Resigning an audit is not a step we take lightly”.