{"id":82317,"date":"2025-05-14T07:14:43","date_gmt":"2025-05-14T06:14:43","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=82317"},"modified":"2025-05-14T07:14:43","modified_gmt":"2025-05-14T06:14:43","slug":"the-po-accounts-debacle-escalates","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2025\/05\/14\/the-po-accounts-debacle-escalates\/","title":{"rendered":"The P&O accounts debacle escalates"},"content":{"rendered":"

The story I posted here yesterday<\/a>, on the late-filing of the accounts of P&O Ferries, reached ITN today, and it looks likely that parliamentary involvement is now likely:<\/p>\n

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As Joel Hills of ITN notes:<\/p>\n

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MPs are threatening to formally summon the chief executive of P&O Ferries to parliament unless the company can explain why it has failed to file accounts on time.<\/p>\n

The accounts of P&O Ferries Division Holdings Limited for the year ending December 31 2023, are seven months overdue.<\/p>\n

Company accounts provide a snapshot of a firm\u2019s financial health. If a company delays or seeks to avoid filing, it leaves investors, creditors, suppliers, staff and customers in the dark.<\/p>\n<\/blockquote>\n

Liam Byrne MP, chair of the House of Commons Business and Trade Select Committee, has written to Peter Hebblethwaite, the chief executive of P&O, demanding an explanation:<\/p>\n

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\u201cA company can\u2019t be safe unless it is financially sound. And we don\u2019t know today that P&O is financially sound because they are so late in filing their accounts,\u201d Liam Byrne told ITV News.<\/p>\n<\/blockquote>\n

The report also notes my work on this issue, saying:<\/p>\n

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Richard Murphy, Emeritus Professor of Accounting Practice at Sheffield University Management School and a former chartered accountant with KPMG, says the language in the resignation letter is \u201cdecidedly unusual\u201d.<\/p>\n

In a blog post, Murphy argues the letter signals a \u201cfundamental breakdown\u201d in trust between KPMG and P&O.<\/p>\n

He writes: \u201cThe construction of the letter makes it very clear that, in my opinion, [KPMG is] questioning the judgement of the management of this company.\u201d<\/p>\n

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In Murphy\u2019s view, the letter suggests P&O either refused to make payments for audit work to be carried out or obstructed it.<\/p>\n

Either way, he infers KPMG has \u201cserious concerns about the future funding of P&O and that they have drawn this concern to creditors, as they are legally required.\u201d<\/p>\n

He adds: \u201cFiling accounts is...both a crime and a moral abuse of the business community and society at large\u201d.<\/p>\n

KPMG and P&O have chosen not to respond to Richard Murphy\u2019s comments.<\/p>\n<\/blockquote>\n

There is a link to the ones I made that were broadcast on ITN last night on their website, here<\/a>.<\/p>\n

I look forward to what MPs have to say.<\/p>\n

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A version of the report on ITN is available in this tweet for those who still use Twitter<\/a>:<\/p>\n

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Back in troubled water: Has P&O gone rogue again?<\/p>\n

MPs are threatening to formally summon the chief executive of P&O Ferries to parliament unless the company can explain why it has failed to file accounts on time.<\/p>\n

Full story by @ITVJoel<\/a>: https:\/\/t.co\/fQ1r0nLZ8f<\/a> pic.twitter.com\/pcidDWlDXU<\/a><\/p>\n

— ITV News (@itvnews) May 13, 2025<\/a><\/p><\/blockquote>\n