Pre-close trading update
Following its successful IPO on the AIM Market of the London Stock Exchange in April 2017, the Company is pleased to confirm that trading for the six months ended 31 May 2017 was in line with expectations.
Eddie Stobart is one of the UK’s leading logistics businesses working across the full supply chain in the UK and Europe, delivering innovative solutions and service excellence to a diverse range of customers in the Retail, Consumer, Manufacturing, Industrial & Bulk (MIB) and E-Commerce sectors.
Sales for the six months to 31 May 2017 grew by 13% to approximately £287m, with operational efficiencies improving the growth rate at an EBIT level. EBIT margins modestly expanded year on year.
The second half of the financial year has commenced well despite the challenges for the logistics sector due to the current political and economic environment.
The second half is traditionally the Group’s stronger period for sales and margins as it includes the peak trading periods for customers in the retail, consumer and e-commerce sectors. In addition, the second half will benefit from a full six months’ contribution from the iForce business.
The acquisition of iForce, which was completed in conjunction with the Company’s IPO, is providing a strong platform for Eddie Stobart to develop its e-commerce offer to existing and a new customers. Management is now focused on leveraging cross-selling opportunities with existing customers, implementing synergies and developing new business.
In line with its acquisition strategy, Eddie Stobart has acquired a 50% interest in Puro Ventures Limited, trading as Speedy Freight, a provider of nationwide B2B express freight services. This acquisition complements the Group’s service offering to business customers in the E-Commerce and MIB sector and broadens its capabilities across the whole supply chain.
The Board is confident for the second half of the financial year and looks forward to announcing the Company’s interim results on 31 August 2017.
Alex Laffey, Chief Executive Officer, commented:
“We are pleased that following our successful IPO in April we have continued to trade well. Our ongoing investment in the business and targeted acquisitions are giving us greater capabilities across our E-Commerce and Manufacturing, Industrial and Bulk sectors. Our operations continue to trade well as we move into the second half of the financial year, and we look forward to delivering a full year performance in line with market expectations.”
Eddie Stobart Logistics plc via FTI Consulting
Alex Laffey, Chief Executive Officer
Damien Harte, Group Finance Director
(Nomad and Broker) Elizabeth Bowman, Jeremy Osler, Harry Hargreaves
+44 (0) 20 7397 8900
Nick Hasell , Matthew O’Keeffe , Alex Le May
+44 (0) 20 3727 1340
For the full announcement please download the PDF