Eddie Stobart, a leading UK supply chain, transport and logistics group, delivering innovative solutions, today announces its half-year results for the six months ended 31 May 2018.
|EBIT % (1)||5.0%||5.9%||(0.9%)|
|EBITDA % (1)||6.2%||6.9%||(0.7%)|
|Adjusted profit after tax (5)||£14.1m||£10.5m||34.3%|
|Adjusted free cash (4)||£0.3m||£0.3m||(98.2%)|
|Adjusted earnings per share (2)||3.9p||3.6p||8.3%|
|Profit/(loss) after tax||£1.4m||(£6.3m)||122.2%|
|Dividend per share||1.54p||1.40p||10.0%|
|Net cash from operating activities||£3.1m||£7.8m||(60.3%)|
|Earnings per share||0.4p||(2.4p)||116.7%|
- Strong revenue growth (organic, new and resulting from acquisitions) in three of our four key sectors, Retail (28%), Manufacturing Industrial and Bulk (MIB), (13%) and E-Commerce (118%). Consumer sector revenue decreased by 6% due to the loss in early 2017, of the Britvic contract, which was regained in full in May 2018
- New contract wins in the year to date with annualised value of £158m, including CEMEX UK, Knauf, Homebase and Britvic Soft Drinks, including since the period end, a significant contract with PepsiCo.
- Renewed contracts with a number of existing customers with an annualised value of £113m
- Underlying EBIT1 increased by 7.1% to £18.1m. Underlying EBIT1 growth has lagged behind sales growth due to the cost and complexity of implementing major contract wins. We expect to see the benefits of these contracts flow though in the second half of the year
- Cash flow performance has been impacted in the period by investment in our warehousing assets and net working capital to support contract wins
- Progress in successfully repositioning our network and warehouse portfolio to accommodate new customer volumes, ensuring we maximise value for shareholders using our property expertise and optimise use of capacity
- Acquired companies continue to trade in line with expectations. Sales increases were 20% for iForce and 52% for Speedy Freight
- On 29 June we acquired The Pallet Network, for £52.8m, representing a major step in our stated strategy of becoming a full end-to-end logistics service provider; expected to be earnings enhancing in FY18
- As with previous years, we now move into the traditionally stronger second half with costs of new contract wins absorbed in the first half. The second half has started well and the Board remain confident of delivering full year in line with expectations
- Interim dividend of 1.54 pence per share: +10% versus 2017 (1.40 pence per share)
Chief Executive Alex Laffey commented:
“We are pleased to have delivered a strong first-half performance as we continue to implement our strategy of becoming a leading provider of end-to-end supply chain solutions. This has been demonstrated year to date, as we have won new contracts with blue chip customers adding an annualised £158m of new business.
The recent acquisition of The Pallet Network (TPN) further adds to the range of services we provide to our customers across the supply chain.
As previously indicated in our January trading update, our performance, as in previous years, will be weighted towards the second half of the year with the first half absorbing the costs of implementing new contract wins and the second half experiencing the benefits of these new contracts.
The second half period has started well and the Board remains confident of delivering full-year results in line with market expectations.”
Eddie Stobart Overview
Eddie Stobart is now recognised as one of the UK’s leading providers of end to end supply chain solutions.
Key differentiators of our business are:
Flexible, scalable operational network which can be leveraged to support future growth
Shared-user consulting-led operating approach, delivering operational efficiency and offering our customers a flexible pay-as-you-go model
Operations which span the whole supply chain via road, rail, container movements and contract warehousing offering the full range of end-to-end logistical services
Continued investment in people and industry relevant skills through our dedicated Training Academy
Well positioned across different markets, with a strong growth focus in E-Commerce and MIB sector
Long-term contractual relationships with a diversified blue chip customer base.
Attractive financial profile with a consistent record of delivering growth both organically and through targeted acquisitions.
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
Nicholas Wells / Jeremy Osler / Harry Hargreaves
+44 (0)20 7397 8928
Chris Bowman / Toby Flaux / James Brooks
+44(0)20 3207 7800
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