Eddie Stobart H1 revenue up 25% to £359m

Warrington-based Eddie Stobart Logistics plc said on Thursday its revenue rose 25.3% to £359.3 million in the six months ended May 31, 2018.

First-half profit was £1.4 million compared to a loss, resulting primarily from refinancing costs, of £6.3 million in the comparable period last year.

Interim dividend will be 1.54p per share, up 10%.

Eddie Stobart has recorded new contract wins in the year to date with an annualised value of £158 million, including deals with CEMEX UK, Knauf, Homebase and Britvic Soft Drinks and, since the period end, a “significant” contract with PepsiCo.

The firm said renewed contracts with a number of existing customers carry an annualised value of £113 million.

Eddie Stobart Logistics CEO Alex Laffey said: “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.”