Eddie delivering the goods as trade improves

Just months after warning over profits, Stobart Group revealed it now expects to post annual results “moderately” ahead of market expectations. The haulier also said it had cemented a three-year distribution deal with supermarket giant Tesco.

The group, which runs the iconic fleet of more than 2,200 Eddie Stobart trucks, warned over profits in January as the uncertain economy weighed on its chilled distribution division.

But a spokesman for the firm said performance has been “better across the majority of divisions” in recent months.

Stobart also announced a number of boardroom changes, including cutting the role of executive chairman after just two months, saying it was “no longer appropriate” amid improved trading. Formerly deputy chief executive, Avril Palmer-Baunack was promoted to executive chairman in late January.

She is standing down from the post immediately and will stay on as non-executive chairman until a new chairman is found.

Stobart added senior independent director Alan Kelsey is also quitting. Retiring non-executive Rodney Baker-Bates is staying on until a new chairman is found.

The haulier, headed by chief executive Andrew Tinkler, said the deal with Tesco formalises a previous pay-as-you-go agreement.

It has been running primary and secondary distribution for the UK’s biggest supermarket chain for eight years and serves nine Tesco distribution centres in the UK and Ireland.

Analysts at Espirito Santo said they had been expecting annual pre-tax profits of £27m, but added the update suggested earnings could be up to 10 per cent above this.

Stobart operates from more than 40 sites in the UK and Europe.