In a statement last month, the company, which operates temperature-controlled supply chains in the food and drink industry, said a review of its previous statements under new chief financial officer Anoop Kangits found the 2018 adjusted operating profit figure was overstated by £2m.
Eddie Stobart has also delayed the publication of its interim results until early September, pending the completion of the new review.
Working with auditors
A statement from the logistics firm said it was working with auditors to apply a more “prudent approach to revenue recognition”. The review would also reassess the “recoverability of certain receivables and 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 earnings before interest and taxes 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,” read the statement. “As a result, the board also intends to review the group’s current dividend policy.”
Eddie Stobart also announced that Alex Laffey will step down from his role as chief executive after four years with the company. He will be replaced by Sebastien Desreumaux, current chief executive of supply chain consultancy iForce, a subsidiary of Eddie Stobart.
Twenty years’ experience
Desreumaux joined iForce in 2018 and has more than 20 years’ experience in the logistics sector, including time spent at Norbert Dentressangle, now part of XPO Logistics. He is expected to be appointed to the Eddie Stobart board of directors in due course.
Meanwhile, in other financial news, the closure of the Pinneys site in Annan, Scotland, owned by Young’s Seafood, cost the fish processor more than £11m, as it reported an operating loss in its financial results for the year ended 30 September 2018.