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Eddie Stobart chief to leave as shares suspended | Eddie Stobart chief to leave as shares suspended |
(32 minutes later) | |
Eddie Stobart has suspended trading of its shares and announced that chief executive Alex Laffey will stand down with immediate effect, as the firm looks into an accounting error. | Eddie Stobart has suspended trading of its shares and announced that chief executive Alex Laffey will stand down with immediate effect, as the firm looks into an accounting error. |
In a statement, the firm said that it also intended to review the group's current dividend policy. | |
The transport logistics company, known for its green lorries, revealed a £2m discrepancy in its accounts last month. | |
Sebastien Desreumaux, currently head of iForce, will take over from Mr Laffey. | |
Mr Desreumaux joined the company in July 2018 to run iForce, the retail delivery arm of Eddie Stobart. | |
A review of its statements by new chief financial officer, Anoop Kangits, found that the 2018 adjusted operating profit figure of £55.3m was overstated by about 4%. | |
Publication of the firm's financial results for the six months to 31 May 2019 has now been delayed to early September. | |
The firm added that half year profits were likely to be "significantly lower" than suggested in a recent trading update, and that it is "applying a more prudent approach to revenue recognition". | |
Founded by Edward Stobart in 1970, the firm operates 2,700 vehicles and 43 logistical hubs in the UK and Europe, and employs around 6,600 people, according to its website. | |
The company's largest shareholder is troubled fund manager Neil Woodford, who holds a 22.9% stake. |