Retail woes hit Stobart profit hopes

Published on 25/08/2012 00:00

The owner of Eddie Stobart warned on profits at its trucking division as a knock-on effect of the squeeze on its major retail customers.

Stobart Group, which operates 2,250 trucks from 40 sites across the UK and Europe, said its chilled fleet was expected to record a loss in the six months to 31 August as sales volumes have been hit by shoppers tightening their purse strings and restructuring charges.

The group is understood to have been impacted by weaker trading at its biggest customer Tesco, while other grocers and household goods firms are also under pressure.

It said long-term prospects for the group remain robust and it will benefit from a restructuring of its chilled fleet, but full year results would be below previous expectations.