Eddie Stobart back in black

EDDIE Stobart’s owner has claimed it has moved on from a devastating accounting scandal after swinging back to profit.

Shares soared nearly 37pc after Greenwhitestar Acquisitions (GWSA) said the trucking company had benefited from the pandemic as demand from customers increased.

The business added that it has left old loss-making contracts and signed new ones – most recently announcing a deal to shuttle products between Morrisons’ distribution centres and stores. Other wins include Hillebrand and McBride in the UK, with Nike and Amazon using the services of its EU business, it added. It notched up a £16.6m profit in the half year to May 31, after making a loss of £6.3m in the same period last year.

GWSA executive chairman William Stobart said: ‘These results show we have put past challenges firmly behind us.’

Stobart, son of founder Eddie, retook control of the haulier following a scandal last year where £2m was unaccounted for.

The problems led to an investigation into the auditors, KPMG and PwC, and saw shares in Eddie Stobart Logistics suspended. A £55m rescue deal was agreed last December, which saw offshore private equity firm Dbay Advisors buy a 51pc stake in Eddie Stobart Logistics – installing Stobart as chairman to oversee the turnaround.

Despite returning to profit, debts rose from £ 236.9m to £242.7m due to the cost of the high interest loan taken out to seal this deal.

Bosses said they want to re-finance the loan ‘as soon as is practicable’.