* In unprecedented move, FCA asks firms to delay results
* Delay to better understand impact of coronavirus on
operations
* Kingfisher, AG Barr, Mears Group, Lamprell impacted
* Hong Kong, Spain have taken similar measures
(Recasts, adds detail on similar action in Spain, background,
context)
By Simon Jessop, Huw Jones and Muvija M
LONDON, March 23 (Reuters) - British companies on Monday
rushed to heed unprecedented calls by regulators to mothball
their results in the face of the escalating coronavirus.
Britain's Financial Conduct Authority said on Saturday that
listed companies planning to report over the next few days
should hold off for two weeks to better assess how the pandemic
is affecting their business.
The move, the first time UK Plc has ever been asked to
suspend results en masse, follows similar actions in countries
including Spain and China and comes as firms grapple with just
how deep an expected global recession is likely to be.
British companies to respond to the FCA's call early on
Monday included home improvement group Kingfisher which
said it would delay full-year results for at least two
weeks.
Kingfisher said it had received a letter from the FCA on
Sunday requesting a delay to the results announcement, which had
been due on Tuesday. The company said it would provide further
updates "as soon as we are advised by the FCA".
Drinks maker A.G. Barr, outsourcer Mears Group
, financial services company STM Group and
energy engineering company Lamprell also said they were
suspending results.
At least 50 companies were expected to report in the week to
March 27, data from Refinitiv showed.
The Financial Reporting Council (FRC), which polices
accountants that check the books of listed companies in Britain,
said on Monday it backed the FCA's decision and that auditors
could broaden their approach to delays in company financial
statements as the situation "rapidly" evolves.
"It is important that due consideration is given by
companies to these events in preparing all reporting," the FRC
said.
"The FRC therefore encourages listed companies and their
auditors to consider carefully whether they should delay other
corporate reports for the next two weeks, such as interim
financial statements and final audited financial statements,
except where necessary to meet a legal or regulatory
requirement," the watchdog said in a statement.
The FCA, FRC and the Bank of England's Prudential Regulation
Authority are expected to come out with a further package of
measures, perhaps as soon as this week.
PwC and KPMG, two of the world's "Big Four" auditing firms,
welcomed the delay.
"It is clear that given the pressures on people and the
changes that we see day to day, it is in the public interest for
reporting to be delayed to give companies the time to properly
consider the impacts on their results," said Jon Holt, head of
audit at KPMG UK.
(Additional reporting by by Sinead Cruise in London, Jesus
Aguado Gonzalez in Madrid; editing by Jason Neely and Josephine
Mason)
