Fallen fund star Neil Woodford was hit with more pain on Friday as shares in Eddie Stobart Logistics, the lorry firm he backs, were suspended and the boss was ousted following an accounting blunder.
Eddie Stobart Logistics said chief executive Alex Laffey will stand down with immediate effect and half-year profits will likely be “significantly lower” than anticipated. The City had been expecting £63 million of underlying operating profits for the full year.
As part of a review with its auditor PwC, it will take a “more prudent” approach when reporting revenues. It will also look at its current dividend policy and delay the publication of the results.
The update comes a month after the transport firm warned accountancy problems had been found. Woodford has 22.9% of the shares.
PwC replaced KPMG in December 2018.
Eddie Stobart’s Sebastien Desreumaux will replace Laffey. The company said it remains confident in the strength of the underlying business.
