On Friday, Eddie Stobart has suspended trading of its shares and declared that its Chief Executive will be ejected with immediate effect, as the firm is looking into accounting discrepancies.
Eddie Stibart is a transport company, which is popular for its red and green trucks, informed a £2m difference in its accounts in July.
The issues were disclosed in a review of past accounts.
Under the newly-appointed Chief Financial Officer Anoop Kang the review highlighted that last year’s operating profits were embellished by around 4 percent.
Therefore, the publication of the transport company’s fiscal results for the six months till 31 May 2019 has now been kept on hold till early September.
The firm has further warned that the profits for the tenure were expected to be revised down from the recent projections, and it is “applying a more prudent approach to revenue recognition,” adding that the group’s dividend policy would also be evaluated/
Outgoing Chief Executive Alex Laffey has spent 4-years at Eddie Stobart, will be replaced by Sebastien Desreumaux.
Mr. Desreumaux is formerly the head of the group’s retail delivery arm iForce. He has joined the company in July 2018.
The revisions of the accounting are expected to add pressure on Investment Manager Neil Woodford, who has suspended trading in the largest fund due to a decline in the amount.
Eddie Stobart’s popular investor is the firm’s largest shareholder with possession of 22.9 percent stake.
The company’s shares are listed on the Alternative Investment Market (AIM), a less balanced alternative to the main FTSE Exchange, which were down by 50 percent over last year ahead of suspension.
The transport company was founded in 1970 by Edward Stobart, which operated 2700 vehicles and 43 logistical hubs in Europe and the United Kingdom, and employed over 6600 people, informed its official website.
Its wide-range of trucks and carriers are a mainstay on British Motorways, while its merchandise spin-off offers a wide variety of branded goods, which comprises of teddy bears, model trucks, wrapping paper, and watches.