The Hipgnosis Songs Fund has made an intriguing move by appointing KPMG Channel Islands Limited as its new auditor. This decision comes hot on the heels of a delay in releasing interim financial results for the six months that ended Sept. 30, 2023, and holds promise for the company’s future financial oversight.
Led by Merck Mercuriadis, the company unveiled this significant shift in a press release on December 20. KPMG will be stepping into the shoes of PricewaterhouseCoopers (PwC), subject to ratification by the fund’s shareholders at an upcoming general meeting scheduled “in due course.” The handover, effective immediately for the financial year concluded on March 31, 2024, marks a notable transition for the Hipgnosis Songs Fund.
Detailing the change, the press release emphasized that PwC CI, the former auditor, has confirmed that there are no pertinent matters requiring attention from the company’s members or creditors. This assurance is pivotal, underscoring a smooth transition between auditors and ensuring continuity in financial oversight.
Earlier, on Tuesday, the fund announced the delay in publishing its financial results, citing concerns about its valuation. The evaluation received from an independent firm considerably diverged from valuations implied by recent transactions in the sector. Notably, transactions like the proposed $417.5 million sale of 29 catalogues to Blackstone-backed Hipgnosis Songs Capital, at a marked-down price of 24.3% from the March 31 valuation, and the recent sale of 20,000 “non-core songs” at a discounted rate of 14.2% from their early fall valuation, raised these concerns.
Amidst these developments, the Hipgnosis Songs Fund is now slated to unveil its financial results on New Year’s Eve, according to a regulatory filing.
The appointment of KPMG as the new auditor injects a fresh perspective into Hipgnosis Songs Fund’s financial oversight, signalling a pivotal moment in the company’s journey. This move, subject to shareholder approval, underscores the company’s commitment to robust financial governance and transparency.
The addition of KPMG promises an era of rigorous scrutiny and responsible financial stewardship, setting the stage for a dynamic trajectory in the music industry’s investment landscape.
For more info: https://www.hipgnosissongs.com/song-investors/governance/