How could the loss of the council auditing contract affect Andrea Baldo?
Mulberry's loss of council audit contract may impact CEO Andrea Baldo The Cullompton Town Council decided to switch its internal auditor from Mulberry Local Authority Services to EAT for the 2026/27 financial year. This decision was driven by a desire to avoid retaining the same firm for six years, despite Mulberry's estimated annual cost being £110 below the fixed quotation offered by PATAS. The loss of this specific contract represents a reduction in operational scope and revenue for Mulberry, the company led by Andrea Baldo. This change in the company's financial and operational base could necessitate strategic adjustments under her leadership.
- Effect
- Mild negative
- How direct
- Brind's reasoning
- When
- Within weeks
- The story
- Gone quiet
How it reaches Andrea Baldo
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Cullompton Town Council decided to change its internal auditor for the 2026/27 financial year. The council selected EAT instead of Mulberry Local Authority Services. This decision followed concerns that the council had used Mulberry for approximately three years, and extending the relationship would mean using the same auditor for six years.
The full event1independent outlet -
As the chief executive of Mulberry, Andrea Baldo leads the company's operations and growth. The loss of a council auditing contract, which contributes to the company's revenue and scope, represents a concrete operational change that impacts the company she leads.
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The facts so far
As reported. Each one links to where it comes from.
- Cullompton Town Council supported switching to EAT rather than continuing with Mulberry Local Authority Services.midweekherald.co.uk
- The council had used Mulberry for approximately three years, and extending the relationship would mean using the same auditor for six years.midweekherald.co.uk
- Mulberry's estimated annual cost was £640, which was £110 below PATAS's fixed quotation of £750.midweekherald.co.uk
Why it matters
For Mulberry, losing any contract, even a smaller council audit, represents a reduction in its revenue stream and operational footprint. As the company's chief executive, Andrea Baldo must manage the strategic implications of such losses, ensuring that the company's growth and financial stability are maintained despite the shift in client relationships.
This decision reflects a broader trend in public sector governance, where councils are actively seeking to diversify their service providers and avoid long-term dependencies on a single firm. The council's choice to switch auditors, despite Mulberry's competitive pricing, highlights the importance of periodic changes in internal audit arrangements.
What we don't know yet
- Will Mulberry seek to replace this contract with a larger or more strategic client?
- How will the council's decision to switch auditors affect its future procurement policies?
What would change this answer
Reporting
- midweekherald.co.ukOct 1
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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.