Troubled asset management company MJ Hudson has sunk deeper into crisis, with its auditor resigning.
MJ Hudson told the City this morning that it learned late on Friday night that its auditor, Ernst & Young LLP, was tendering its resignation with immediate effect.
The letter of resignation from EY states that:
“we are ceasing to hold office because we 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”.
In October, MJ Hudson announced that it was “engaged in discussions with its auditors” regarding significant potential adjustments in relation to its 2022 financial results.
Then in December, MJ Hudson suspended its finance boss, warned it would not be able to complete its full-year audit by the end of December. Trading in its shares was suspended then too.
Sky News, which broke the news of EY’s resignation last night, says the move is “highly unusual and will underline growing concerns about MJ Hudson’s finances.”