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.”
Last year Eddie Stobart appointed PwC as its auditor replacing fellow Big Four firm KPMG following a tender process.