KUALA LUMPUR (Jan 3): London Biscuits Bhd’s external auditor has resigned, as the firm does not have enough resources to provide reasonable professional due care to the company and its subsidiaries.

In a bourse filing, Messrs Nexia SSY PLT (Nexia) had tendered its resignation via a written notice given today. The auditor was re-appointed as London Biscuits’ auditor at its last annual general meeting (AGM) on March 29,2019, until its next AGM.

“The resignation was due to inadequate resources from Nexia, in order to provide reasonable professional due care to the company and its subsidiaries,” the group said.

The confectioner added that it would take the necessary steps to appoint another firm as its external auditor for the financial year ended Sept 30, 2019 (FY19).  

Nexia had expressed a qualified opinion on London Biscuits’ financial statements for FY18, last February.

In its qualified opinion, Nexia said it was unable to satisfy itself by alternative means concerning London Biscuit’s physical inventories held at both a group and company level, as of Sept 30, 2019.

Moreover, other issues involving its opening balance misstatements and trade receivables were also present.

Shares of London Biscuits closed 10% or a sen lower at nine sen today, giving it a market capitalisation of RM26.17 million. It saw 3.51 million shares traded.