Eddie Stobart Logistics CEO departs with immediate effect

Group issues profit warning and temporarily suspends trading in shares.

UK-based Eddie Stobart Logistics has announced that its CEO Alex Laffey has stood down with immediate effect.

His departure came as the group issued a profit warning in relation to its interim results and announced a temporary suspension of trading in its shares.

Laffey has been replaced by Sebastien Desreumaux, who formerly headed the Group’s retail delivery arm, iForce, as well as its Contract Logistics unit.

He is expected to be appointed to the board in due course.

Desreumaux joined Eddie Stobart Logistics in 2018 and previously spent several years with XPO Logistics Europe, formerly Norbert Dentressangle.

In a statement, the group said it was “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 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 time of the half year trading update on 9 July 2019.”

Pending clarification of the impact of these items, the group applied to suspend trading of its ordinary shares on the AIM (Alternative Investment Market), which took effect on 23 August.

It had previously announced that it would release its interim results for the six months to 31 May 2019 on 29 August.

“However,the ongoing review will result in a delay to the publication of the Group’s interim results, and it is now anticipated that the Group will release its interim results in early September.”

The statement concluded: “The board has full confidence in the ability of Eddie Stobart’s management team to deliver an improved performance for the roup going forward, and remains confident in the strength of the underlying business.

According to The Financial Times, the biggest single investor in Eddie Stobart is the investment firm of Neil Woodford, the one-time star portfolio manager whose reputation has taken a hammering following the suspension of investor withdrawals from his £3.5 billion flagship fund in June this year.

A regulatory disclosure puts Woodford Investment Management stake at 23%.

From its headquarters in Warrington, England, Eddie Stobart Logistics has around 2,500 vehicles and 4,000 trailers and operates from 28 distribution centres, and 11 e-commerce sites throughout the UK and Europe. It employs 6,500 staff.

Source: Lloyd´s