Monday 16 September 2019

Eddie Stobart CEO steps down amid accounting review

Eddie Stobart truck beside the Gloucester and Sharpness Canal, UK. Photo By: Education Images/UIG via Getty Images
Eddie Stobart truck beside the Gloucester and Sharpness Canal, UK. Photo By: Education Images/UIG via Getty Images

Alys Key

Eddie Stobart has said goodbye to its chief executive and suspended its shares amid an accounting review which is expected to affect its earnings for the first half of the year.

Boss Alex Laffey is to stand down with immediate effect, the company said, and will be replaced by Sebastien Desreumaux, currently chief executive of its iForce business and head of contract logistics.

Eddie Stobart said it was awaiting clarification on the impact that a review carried out in conjunction with its auditors would have on results.

As part of the process, the board is applying a "more prudent approach to revenue recognition" and looking into provisioning issues.

Although revenue for the first half is expected to be in line with previous guidance, adjusted underlying earnings are likely to be "significantly lower" than anticipated at the time of a trading update last month.

While it awaits the results of the review, the group has applied for its shares on London's junior market to be suspended.

The interim financial results, which were scheduled for publication on August 29, are now not expected to be released until at least early September.

Earnings for the first half are expected to be significantly lower than anticipated at the trading update last month.

The company said: "The board has full confidence in the ability of Eddie Stobart's management team to deliver an improved performance for the group going forward, and remains confident in the strength of the underlying business."

PA Media

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