Eddie Stobart ‘engaging with its lenders’ amid crisis

Troubled Warrington-based Eddie Stobart Logistics said on Monday the firm “is relying more heavily on its available debt facilities” and “is currently engaging with its lenders” as it considers a takeover approach from Isle of Man-based DBAY Advisors Limited, one of its biggest shareholders.

In a stock exchange statement, Eddie Stobart said it continues to expect that its underlying EBIT for the full year “will be significantly below the board’s expectations.”

The firm added: “The company, alongside its advisers, is considering all strategic options (including the potential for raising new equity) and is currently engaging with its lenders.

“The board has also resolved not to declare any dividend for FY19.”

Eddie Stobart said on September 9 its third largest shareholder, Isle of Man-based DBAY Advisors Limited, made a preliminary expression of interest to buy the firm.

The September 9 news followed the bombshell of August 23 when Eddie Stobart announced its CEO Alex Laffey would “stand down … with immediate effect” and the firm said it would suspended its shares and delay its half-year results amid an ongoing accounting probe.

Eddie Stobart’s biggest shareholder is Woodford Asset Management Limited with 22.89% of voting rights, and Stobart Group has 11.78% of voting rights, according to the firm’s website.

DBAY Advisors holds 10.11%.

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Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.