Eddie Stobart shares suspended as chief departs firm

Published: 23 August 2019

Eddie Stobart shares suspended as chief departs firm
At this point, Eddie Stobart has stopped trade in shares as their chief executive has stepped down immediately, while the company researches apparent accounts discrepancies. For shareholders, the company advised the first half of 2019 would be “significantly lower” than initially predicted.

Stobart is a well-recognised firm all across the UK, the accounts for the company were recently reviewed – at which point the concerns were addressed with implications for members of the business which will also impact shares in the company.

During 2018, previous investigations found carried out found that the company’s profits had been overstated by an estimated 4%. As this was the case, Stobart took on additional support with financial officer, Anoop Kang who also worked with external auditors.

Publishing for 2019’s results up until 31st of May was expected to take place on August 29th, but has now been pushed back to early September with the news of the businesses concerns. Eddie Stobart has warned that profits will need to be reconsidered, compared to recent projections – the firm also stated they are “applying a more prudent approach to revenue recognition” along with the dividend policy which will be reviewed, a spokesman said on behalf of Eddie Stobart.

The firm warned that profits for that six-month period were likely to be revised down from recent projections, and that it is "applying a more prudent approach to revenue recognition". The group's dividend policy would also be reviewed, it said.

Edward Stobart founded the company in 1970, today, Stobart operates over 2,700 vehicles with more than 40 hubs for logistics and transport across the UK and Europe – with an estimated 6,000 employees. Eddie Stobart is recognised as one of the most merchandised firms in the logistic industry – with items like model trucks, plush toys, wearable items and even wrapping paper.
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