Eddie Stobart in £239m loss amid exceptional costs

Warrington-based Eddie Stobart Logistics plc said on Monday it made a statutory loss before tax of £238.9 million in the 12 months to November 30, 2019, despite revenues growing 9.7% to £857.1 million. 

Exceptional costs within administrative expenses during the year were £200.2 million including a £169.2 million impairment charge disclosed at the half year.

Adjusted loss before tax was £19.4 million.

The revenue growth was primarily due to the full year contribution of the acquisition of TPN in 2018. 

Excluding TPN, like for like revenues were flat, reflecting the exit from two underperforming contracts. 

Eddie Stobart Group also published a trading update for the period since the end of November 2019, saying: “Following the acquisition by funds managed by DBAY Advisors of a 51% equity interest in the Eddie Stobart Group, the management team led by executive chairman William Stobart has implemented measures to reorganise and streamline the operations and increase utilisation in the property portfolio, which are expected to positively impact the full year results to November 2020.

“The team continues to closely monitor the impact of Coronavirus (COVID-19) on trading.

“While there have been some volume reductions in parts of the business, the Eddie Stobart Group has benefited from its traditional strong exposure to fast-moving consumer and grocery goods, as well as its e-commerce related activities and volumes in these areas remain strong.

“Following the injection of funding by DBAY in December 2019, the Eddie Stobart Group management team believes the group continues to be well funded in this period of uncertainty.”

Eddie Stobart Logistics chairman Adrian Collins said: “For obvious reasons much of this report deals with the past and makes for difficult reading but we are pleased to be putting these issues behind us.

“Since I have joined the board, I have been impressed with the calibre and dedication of the Eddie Stobart leadership team and look forward to the future with optimism.

“I would like to thank shareholders for their continued support as the company works towards becoming an investment company.”