(Alliance News) - Eddie Stobart Logistics PLC on Friday said Chief Executive Alex Laffey is stepping down immediately and the company's shares have been temporarily suspended.
The company has promoted Sebastien Desreumaux, currently CEO of iForce and head of Contract Logistics at Eddie Stobart, to group CEO. Desreumaux will join the logistics firm's board "in due course".
The company has been undertaking a review alongside its auditors over its interim results and "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".
The company said that the "full impact of these items" on its adjusted earnings before interest and taxation is not clear but is expected to be "significantly lower than anticipated" at the time of Eddie Stobart's July profit warning.
In July, the firm cut its adjusted earnings before interest and taxation forecast by GBP2 million. Revenue is still expected to align broadly with the firm's expectations.
The company has applied to have its shares suspended from AIM trading, and the suspension is now in place. The company said the suspension is "pending clarification of the impact" of its new revenue recognition approach.
The company previously announced it would be releasing its interim results for the six months to May 31 on Thursday next week but publication has now been delayed to "early September".
While the company's shares have been suspended already at its request, last closing at 71.00 pence, failure to publish an interim report on time triggers a share suspension under AIM rules.
"The board has full confidence in the ability of Eddie Stobart's management team to deliver an improved performance for the group going forward, and remains confident in the strength of the underlying business," the company said.
Sky News reported the suspension and CEO departure on Thursday night and noted that Neil Woodford's troubled firm, Woodford Investment Management, has a "just under 23%" stake in Eddie Stobart.
https://news.sky.com/story/eddie-stobart-crisis-deals-fresh-blow-to-woodford-11791584