Troubled times for Eddie Stobart
Eddie Stobart Logistics announces that Alex Laffey will stand down as chief executive of the group with immediate effect. Sebastien Desreumaux, currently CEO, iForce and head of contract logistics, will take over as chief executive and is expected to be appointed to the board in due course. Desreumaux, 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).
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 of the year 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 half year trading update on 9 July 2019. (mw)