Transport group Eddie Stobart has announced a £2m cut to its EBITDA for the previously stated year ending November 2018, after a review found an “accounting issue”.
The company announced in its latest trading update that following the appointment of its CFO, Anoop Kang on 1 April 2019, a review carried out into the group’s prior year financial statements found matters which will be addressed by means of a Prior Year Adjustment.
Eddie Stobart said in the update: “The likely cumulative effect on the results for the year ended 30 November 2018 will be to reduce adjusted EBIT by approximately £2m. There will be an adjustment to retained earnings as at 30 November 2017 of approximately £11.5m, primarily relating to the lease accounting involving four legacy sites.
“The majority of these adjustments are non-cash and do not affect our banking covenants. Although the 2019 adjusted EBIT impact of these matters is £1.6m we expect to deliver a full year result in line with the Board’s expectations. Further details will be included in our Interim Report.”