April 2 (Reuters) - British freight company Stobart Group Ltd said it would report full-year results moderately ahead of market forecasts, sending its shares up 7 percent.
The company also said it would do away with its executive chairman position.
“They thought they needed an executive chairman, and the board have now decided that they don‘t, and are looking for a new chairman who’ll be non-executive,” a company spokesman said.
Stobart warned in January that full-year operating performance would be slightly below market expectations as its transport and distribution business, which accounts for about 90 percent of overall revenue, continued to function in an uncertain environment.
Analysts on average were expecting the company to report revenue of 646.8 million pounds ($985.2 million) and a pretax profit of 28.9 million pounds for the year ended Feb. 28, according to Thomson Reuters I/B/E/S.
The company said on Tuesday it had signed a three-year contract with Tesco Plc, to which Stobart has been providing services on a pay-as-you-go basis for the past eight years.
Stobart shares were up 1.55 percent at 82.1 pence at 0731 GMT on the London Stock Exchange. The shares touched a high of 85.75 pence earlier.