Eddie Stobart soars as owner’s revenue tops £416m

Shares of Warrington-based Eddie Stobart Logistics plc rose about 37% on Monday after it said its owner GWSA Group reported revenues of £416.5 million for the six months to May 31, 2020, a performance “broadly in line with the previous year.”

GWSA Group is the holding company of the Eddie Stobart, iForce, The Pallet Network and The Logistics People businesses.

GWSA said Eddie Stobart made £309.5 million revenue in the period, The Pallet Network made £62.6 million, iForce made £46.6 million and The Logistics People made £30.2 million.

GWSA net debt at May 31 rose to £242.7 million.

“A highlight for the period was the acquisition of the ‘Eddie Stobart’ and ‘Stobart’ brands, at a cost of £10m, which will deliver future brand license fee savings of £3m per annum and allow the group to further differentiate the business from its competitors …” said GWSA.

“During the period, the initial phase of the business re-organisation was successfully completed, resulting in a return to profitability with underlying EBITDA for the period of £16.6m (2019: loss of £6.3m), before the impact of IFRS 16 …”

William Stobart, executive chairman of GWSA, said: “I am pleased to be back leading the GWSA Group.

“These results show we have put past challenges firmly behind us.

“The past six months have shown the strength of our differentiated business model which has allowed us to grow existing customer relationships, win new business, return the GWSA Group to profitability and overcome challenges presented by Covid-19.

“Looking ahead, we are confident that our renewed focus on our historic core capabilities as transport and logistics services provider for the FMCG (fast-moving consumer goods) and grocery sectors, and as a leading player in e-commerce logistics and fulfilment, will allow us to drive profitable growth going forward.”

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Mark McSherry
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