Colombo, Sri Lanka – 22 September 2026 – Lee Hedges PLC (CSE: LHCL) today confirmed a significant change in its audit arrangements, announcing the appointment of Messrs Ernst & Young, Chartered Accountants, as its new auditors. This transition, which sees Messrs KPMG, Chartered Accountants, concluding their role, received formal approval from the company’s shareholders at its Annual General Meeting (AGM) held on September 21, 2026.
Details of the Auditor Transition
The announcement, made public on September 22, 2026, was communicated to the Colombo Stock Exchange (CSE) by Jacey & Company, the Secretaries and Registrars to Lee Hedges PLC. This notification aligns with the requirements of Section 08 of the CSE Listing Rules, ensuring transparency in corporate governance matters.
According to the official communication, the shareholders of Lee Hedges PLC voted to approve the appointment of Ernst & Young during the AGM. Ernst & Young is a globally recognised professional services firm, known for its expertise in assurance, tax, transaction, and advisory services. They will now be responsible for auditing the financial statements of Lee Hedges PLC, taking over from KPMG, another prominent international accounting firm.
Implications for Corporate Governance and Financial Reporting
A change in auditors, while a standard practice for public companies, is a closely watched development by investors and stakeholders. For Lee Hedges PLC, this move underscores its commitment to robust corporate governance and maintaining high standards in financial reporting. The selection of a firm of Ernst & Young’s calibre is generally perceived as a positive indicator, reinforcing confidence in the accuracy and integrity of the company’s financial disclosures.
Changes in audit firms can occur for various strategic reasons, including the rotation of audit partners, a desire for fresh perspectives, or alignment with evolving corporate strategies. Regardless of the specific drivers behind this decision, the appointment of a new auditor is a crucial step in ensuring independent oversight of a company’s financial health.
Role of Secretaries and Registrars
Jacey & Company, serving as the Secretaries and Registrars for Lee Hedges PLC, played an instrumental role in facilitating the formal notification of this significant change to the regulatory authorities. Their office, with a registered address at No. 9/5, Thambiah Avenue, Colombo 7, ensures compliance with regulatory frameworks governing listed entities in Sri Lanka.
Moving Forward
The appointment of Ernst & Young signifies a new chapter for Lee Hedges PLC in terms of its audit partnership. As the company continues its operations within the dynamic Sri Lankan business landscape, this decision is expected to further strengthen its corporate governance framework and enhance stakeholder trust in its financial stewardship.
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