Eddie Stobart provides the following update on contract progress across all business sectors. The Company intends to announce in mid-January its year-end trading update for the 12 months ending 30 November 2017.
Within our Retail sector we now provide services to most of the major supermarkets in the UK. We have secured a new three-year contract with Homebase, starting in January 2018, to supply logistics services to over 230 stores. In addition we are in discussions with a number of Homebase’s suppliers to explore opportunities to support their supply chain requirements.
Within our Consumer sector we have re-secured contractual volumes with long standing customers, such as Britvic and Coca Cola, reflecting our continuing ability to provide high quality supply chain solutions. We are seeing volumes in line with our expectations for this customer sector in the lead up to Christmas. Eddie Stobart’s warehousing network is currently operating at optimum utilisation levels and we continue to invest in expanding warehouse capacity. We have signed a new 10-year warehousing contract with our existing customer Moy Park and other new warehousing contracts with C&D Foods and Novelis.
Our Manufacturing, Industrial & Bulk sector continues to grow with new contracts having been secured with Hanson, Argent Energy and Novelis. We still see significant opportunities for growth within this sector as customers look to outsource areas of their supply chains.
E-Commerce continues to be a rapidly growing customer sector. We are providing increased services to the UK/European leading online retailer in the lead up to Black Friday and Christmas. We continue to see strong growth from the iForce e-commerce solutions business that we acquired in April 2017 and expect the E-Commerce sector to produce material year-on-year growth. New five-year contracts have been secured with MedicAnimal and Prezzybox with an anticipated aggregate value of circa £20 million. Other successful tenders are anticipated to result in additional new contracts with average lengths of three years. Additional warehousing capacity created at an iForce site in Corby following a significant investment programme has been utilised immediately by the existing iForce customer base. We are continuing to leverage iForce customer relationships resulting in Eddie Stobart supporting Fortnum & Mason in delivering its hampers and gifts in the lead up to Christmas.
iForce and Speedy Freight, the B2B express freight business acquired in July 2017, continue to offer further cross-selling opportunities to Eddie Stobart’s broader Transport and Warehousing business.
Within our Special Operations sector the Company has secured new contracts to provide logistics and technical services to Mercedes Benz and the FIA for the next Formula One season and continues to provide support to other racing teams.
Chief Executive Alex Laffey commented: “We are pleased with our progress in securing new customers as well as retaining and growing business with existing customers, in line with expectations. We look forward to supporting our customers as we head into our peak trading period.”
Eddie Stobart Logistics plc
Alex Laffey, Chief Executive Officer
Damien Harte, Chief Financial Officer
Nick Hasell / Alex Le May/ Matthew O’Keeffe
+44 (0)20 3727 1340
Cenkos Securities Plc (Nomad & Joint Broker)
Nicholas Wells / Giles Balleny / Harry Hargreaves
+44 (0)20 7397 8900
Berenberg (Joint broker)
Chris Bowman / Toby Flaux / Laure Fine
+44 (0)20 3207 7800