KPMG has resigned as the auditor for P&O Ferries, citing its inability to complete the audit of the company’s 2023 accounts to the “required standard.” The Big Four accounting firm stepped down in mid-March after nearly 20 years of overseeing the Dover-Calais operator’s financial statements. The resignation letter, recently filed with Companies House, outlines the challenges KPMG faced in conducting the audit.
The firm stated that the audit process had been severely hindered by the late filing of P&O’s 2022 accounts, which were due by the end of September 2023 but were only submitted in November 2023. KPMG expressed concern that “some of the drivers of that delay remain” but did not provide further details. As a result, the auditors noted they had performed very limited work on the statutory audit for the year ending December 31, 2023, which is now already seven months overdue.
KPMG’s resignation letter emphasized the importance of bringing the issue to the attention of the company’s members or creditors. P&O Ferries has yet to comment on the situation, and a spokeswoman for KPMG declined to provide additional information beyond the letter.
Reports earlier this week revealed that P&O Ferries has appointed a new auditor to replace KPMG, although the identity of the firm has not been disclosed.
P&O Ferries, a subsidiary of logistics giant DP World, has been owned by the Dubai ruling family since 2006. The company faced significant challenges in 2022, carrying 2.83 million passengers—42% more than the previous year—but still posted a loss after tax of £249.4 million.
The company has been embroiled in controversy since 2022, when it made headlines for firing hundreds of workers without warning and replacing them with cheaper foreign agency staff. The abrupt sackings, which were announced via a video message, sparked outrage and led to protests from trade unions. P&O’s CEO, Peter Hebblethwaite, later told a parliamentary hearing that he deliberately ignored trade unions during the process, drawing condemnation from both ministers and unions.
In the wake of the sackings, Labour introduced new legislation aimed at protecting jobs and wages within the maritime sector. Despite the outcry, the Insolvency Service decided not to pursue criminal charges after determining that there was “no realistic prospect of a conviction.”
