Eddie Stobart chief stands down and company suspends trading in shares

Eddie Stobart chief stands down and company suspends trading in shares

Transport and logistics group Eddie Stobart Logistics plc has announced that its Chief Executive Alex Laffey is standing down with “immediate effect” while the company has suspended trading in its shares to reassess its finances.

The new developments come after Eddie Stobart announced in July that a review of last year’s financial statements showed that profits were £2 million less than announced.

A statement from Eddie Stobart noted: “As part of the Group’s review carried out in conjunction with the Group’s auditors in relation to the interim results, the Board is applying a more prudent approach to revenue recognition, re-assessing the recoverability of certain receivables, as well as considering the appropriateness of certain provisions.

“While revenue expectations for the first half are broadly in line with previous guidance, the full impact of these items on Adjusted EBIT is unclear, but it is likely to be significantly lower than anticipated at the time of the half year trading update on 9 July 2019.”

Eddie Stobart said the ongoing review will result in a delay to the publication of the Group’s interim results, which was due  at the end of next week. The company now anticipates this will happen in early September.

Alex Laffey will be replaced by Sebastien Desreumaux, currently CEO, iForce and Head of Contract Logistics.

Sebastien, who joined Eddie Stobart in 2018, has extensive experience in the logistics sector, including 20 years spent with Norbert Dentressangle (now part of XPO Logistics). 

During his time at Eddie Stobart, Sebastien has driven the integration of iForce’s e-commerce expertise with the wider capabilities of the group before taking on a wider role as Head of Contract Logistics and Warehousing.