Warrington-based Eddie Stobart Logistics plc said it could drop the iconic Eddie Stobart brand name in the next few years.
Eddie Stobart Logistics currently pays its former parent Stobart Group royalties for using the name — but the CEO of Eddie Stobart Logistics acknowledged in the firm’s annual results that dropping the name once the existing agreement ends in February 2020 is a possibility.
“Since listing in April 2017, our brand licencing arrangement with Stobart Group has not changed, with the present financial arrangements ending in February 2020,” said Eddie Stobart Logistics CEO Alex Laffey.
“We have options beyond 2020 to continue our licencing arrangements;
· Pay £3 million a year for continued use of the licence
· Purchase a perpetual licence for £15 million for use in the logistics market
· Purchase a perpetual licence for £50 million for unrestricted use
“The team at Eddie Stobart is passionate about our name and the leading brand.
“However, we also recognise that following the introduction of our new strategy and the recent acquisitions, we need to review our position given the broader range of supply chain services we now offer.
“The board is committed to reviewing all options and we will ensure we consider the views and interests of our people, customers and shareholders before deciding on the best way forward.”
Eddie Stobart Logistics plc said its revenue rose 9.4% to £623.9 million in the year to November 30, 2017 — its first year as an AIM-listed company.
Profit before tax fell 11.6% to £9.9 million while operating profit slipped 1% to £26.6 million.