Stobart hit by weak demand

Eddie Stobart suffered a reverse yesterday when the trucking firm admitted that even the kings of the road have been affected by the recession.

Weaker demand for its services during the Olympics and even the bad summer weather buffeted the firm, which was founded by Eddie Stobart 30 years ago. His son Edward, who took over the firm, died last year at just 56.

The company said trading within its transport division had been lower than expected, a blow given that the group's last full-year results showed the transport division producing 80 per cent of profits.

Investec said in a note: "Stobart's trading statement comments were unexpected (but indicative of the economic environment) and we are making some hefty forecast downgrades."