Smith & Nephew appointed new auditors for the year ending Dec. 31, 2015, ending a 77 year relationship with previous auditors Ernst & Young.
The change is subject to approval by the company's shareholders at the 2015 Annual General Meeting. Smith & Nephew's Audit Committee oversaw a competitive tender process with board chairman Roberto Quarta, CEO Olivier Bohuon, CFO Julie Brown and a few others making the final selection.
This is another in several changes this year for the company; last week Smith & Nephew entered into a commercial agreement with Blue Belt Technologies to bring robotic orthopedic navigation to the Journey Uni Knee. The company has also been linked to several acquisition rumors, but no serious suitors have stepped forward yet. In June, Smith & Nephew acquired ArthroCare, a medical device company focused on sports medicine, for $1.5 billion, and the acquisition is expected to add approximately $85 million to the company's annual trading profit in the third full year.
"In-line with current corporate governance best practice, as previously announced, this was the right time to conduct a comprehensive, thorough and robust tender process," said Chairman of the Audit Committee Ian Barlow. "The Audit Committee and Board colleagues are pleased to appoint KPMG as our new auditor, subject to shareholder approval at the Annual General Meeting to be held in 2015. We look forward to their support as we maintain our independent oversight of the financial affairs of Smith & Nephew."
EY will undertake the audit for the year ending Dec. 31, 2014. Smith & Nephew's first quarter knee implant revenue was disappointing — relatively flat over the same period in 2013 — and the company reported revenue was only up 1 percent to around $1 billion.
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