Wednesday 28th August, 2019
Edward Stobart one of the UK’s most well-known logistics company operating some 2,700 vehicles, and approx. 5,000 trailers has suspended its stock trading after an investigation found a £2m accounting-based error in its 2018 accounts.
This came to light after the appointment of CFO, Anoop Kang in April and his investigation into the company’s finances. His review found that the company’s 2018 operating profits were inflated by roughly 4%.
As part of this review conducted with the support of the Group’s auditors, the Board was prompted to apply “a more prudent approach to revenue recognition, re-assessing the recoverability of certain receivables, as well as considering the appropriateness of certain provisions.”
The former chief executive Alex Laffey will be replaced by Sebastien Desreumaux, the current CEO of the company’s iForce division.
In December last year Eddie Stobart changed auditors by appointing PwC after KPMG resigned from the role due an alleged breakdown in the relationship between the firms.
The accounting revisions are likely to add to pressure on high-profile investment manager Neil Woodford, who is the largest shareholder in Eddie Stobart, with a 22.9% stake. According to the BBC.
Publication of the firm's results for the six months to 31st May has also been delayed, they were due to be released on 29 August, but are now expected in early September.
Edward Stobart has 43 centres throughout the UK and Europe and employs around 6,600 people.