Eddie Stobart Logistics plc, the AIM-quoted cash shell which holds a 49% equity interest in the trading entities of Eddie Stobart, a leading UK end-to-end supply chain, transport and logistics group announces its unaudited interim results for the six months ended 31 May 2020.(1)
- On 9 December 2019, the Company concluded a transaction with DBAY Advisors Limited (“DBAY”), in order to provide additional funding to the Eddie Stobart trading businesses (“Eddie Stobart Group”).
- At the reporting date, the Company’s only holding is the investment in Eddie Stobart Group via its 49%share in Marcelos Limited. As the Company does not have any subsidiaries at the reporting date, there is no requirement for consolidation, and these interim results are therefore presented on a standalone basis.
- At 31 May 2020, the Company has revalued its investment in Marcelos Limited to £30m (thus incurring a £15m loss) to reflect the market capitalisation of the Company at period end.
- The Eddie Stobart trading entities have continued to deliver excellent service to its customers and since the start of the HY20 period, despite the difficult environment due to Covid-19, have won a substantial new contract with Morrisons, begun to repay senior debt, acquired the Eddie Stobart brand, made progress in reducing warehouse space, and exited underperforming contracts.
- The Company’s underlying loss (2) before tax in the period was £16.3m (2019: loss of £3.9m) before exceptional items of £3.4m (2019: £Nil) and statutory loss before tax was £12.9m (2019: loss of £3.9m).
- The Board remains committed to converting into an Investing company before 9 December 2020, which will require a shareholder vote and fund raise of at least £6.0m.
- The Board also envisages entering into an investment management agreement with DBAY, with an investment strategy focused on private equity deals in the UK and Europe.
1 For the purposes of these results the “Eddie Stobart Group” means Greenwhitestar Acquisitions Limited and its subsidiaries at 31 May 2020, which were subsidiaries of the Company prior to the transaction with DBAY in December 2019, and “HY20” means the six months ending 31 May 2020.
2 Underlying profit/loss before tax is defined as profit/loss before tax adding back exceptional items.