Eddie Stobart fires boss and suspends shares after accounting scandal
Eddie Stobart parted ways with its chief executive and suspended trading in its shares this morning after a multi million-pound accounting error shook the group.
Alex Laffey will step down from the role after four years with the logistics firm whose biggest stakeholder is embattled fund manager Neil Woodford.
Read more: Eddie Stobart first half profits will be ‘at lower end’ of board expectations amid accounting error
The company also suspended trading in its shares as it said that the board would review its dividend policy.
Shares will be suspended as it works to understand an accounting error which would hit adjusted operating profits by £2m.
However, a statement from the company today said the full impact was “unclear”, but it is “likely to be significantly lower than anticipated.”
Meanwhile its results for the half year to 31 May, due to be released next Thursday, will now be delayed.
Read more: Eddie Stobart keeps on trucking with revenue and profit up strongly
The group added: “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.”
Neil Woodford, the fund manager, owns a 22.9 per cent in the company. It is the second blow his fund has taken today after it devalued another one of its investments.