StockMarketWire.com - Eddie Stobart Logistics cut its growth outlook following a number of adjustments made to half-yearly results, as auditors continued to review its books.

The logistics company also said that DBay would not be making an offer for the entire company, but rather acquire a 51% stake in its Greenwhitestar Acquisitions business.

The impact of adjustments now meant that first-half operating earnings would represent a loss of not less than £12m, and full-year earnings no more than £2m, the company said.

But losses could be higher as an ongoing review by auditors 'may give rise to material further adjustments,' it added.

The guidance was below a previous forecast of earnings before interest and tax in the range of £10m to £11m.

Net debt for the full year was expected to be about £200m, which the company warned was unsustainable.

To improve liquidity, it had entered into an agreement to sell a 51% stake in Greenwhitestar Acquisitions to a fund managed by DBAY Advisors.

Under the agreement, the fund would indirectly acquire a 51% stake in Greenwhitestar and inject about £55m of new financing into the group's operations.

The proposed transaction would be put to a shareholder vote at a meeting on or around 2 December.

'The proposed transaction announced today provides Eddie Stobart with the opportunity to move forward and look to deliver sustainable growth and profitability from a stable footing.' said chief executive Sebastien Desreumaux.

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