Eddie Stobart Logistics plc
(“Eddie Stobart” or the “Group”)
Interim Results for the six months ended 31 May 2017
Eddie Stobart, a leading UK logistics and supply chain company delivering innovative solutions and service excellence to a diverse range of customers in the Retail, Consumer, Manufacturing, Industrial & Bulk (MIB) and E-Commerce sectors, is pleased to announce its interim results for the six months ended 31 May 2017.
- Successful initial public offering (IPO) on the Alternative Investment Market (AIM) completed on 25 April 2017 and supported by blue chip institutional investors raised £130m for the Company, used primarily to reduce gearing, partially fund the acquisition of iForce Group and provide Eddie Stobart with a financial platform to support its growth ambitions.
- Experienced plc board in place with Philip Swatman joining as Chairman and Stephen Harley and Christopher Casey as Non-Executive Directors.
- Acquisition of iForce Group for total consideration of £44.9m, a market leading provider of ECommerce solutions, providing a strong platform for Eddie Stobart to develop its offer to existing and new customers in this growing sector.
- Strong rolling pipeline of potential new business weighted towards strategic growth in E-Commerce and MIB.
- Post period end, acquisition of a 50% interest in Speedy Freight, which offers nationwide B2B express freight services and supports Eddie Stobart’s capability to move urgent, time critical and pallet sized loads.
- Further investment into Eddie Stobart’s Training Academy, including the acquisition post period end of the remaining interest in The Logistics People staffing business, to attract and retain quality staff for both Eddie Stobart and the wider commercial market.
- First half results in line with expectations.
- Continuing double digit turnover growth with Underlying Revenue1 up 13% to £286.8m (2016: £253.6m). Reported revenue increased to £286.8m from £266.4m in the corresponding period in 2016.
- Underlying EBIT2 increasing 14% to £16.9m (2016: £14.8m). Reported profit from operating activities; including exceptional items reduced from £10.2m to £5.6m and Loss for the period of £6.3m (2016: profit for the period of £1.7m) mainly due to the £12.6m of exceptional items, principally relating to the IPO and associated refinancing.
- Significant increases in our targeted areas of MIB and E Commerce, with Underlying Revenue1 growing 22% and 51% respectively
- Underlying EBIT2 margin improving to 5.9% (2016: 5.8%).
- Free Cash Flow4 of £11.1m representing 56% of Underlying EBITDA2 (2016: (£3.4m)).
Chief Executive Alex Laffey commented:
“Following our successful IPO in April this year, we have delivered a strong performance in line with our expectations. The acquisition of iForce Group is integrating well and has provided us with a strong platform to develop our e-commerce offer to existing and new customers. Our focus is now on leveraging cross-selling opportunities with existing customers, implementing synergies and developing new business.
Post period end we have further strengthened our offering through the acquisition of Speedy Freight and the remaining 50% stake in The Logistics People.
I am also pleased to announce our maiden interim dividend in line with our progressive dividend policy and underlying our confidence in the business. Our traditionally stronger second half of the year has started encouragingly and we are confident of delivering a full year performance in line with market expectations.”
Eddie Stobart Overview
Eddie Stobart is now recognised as one of the UK’s leading providers of end to end supply chain solutions.
- Key differentiators of our business are:
- Flexible, scalable operational network which can be leveraged to support future growth.
- Shared-user consulting led operating model delivering a combination of above average levels of asset utilisation and operational efficiency offering customers a flexible ‘pay-as-you-go’ model to reflect demand.
- Operations which span the whole supply chain via road, rail, container movements and contract warehousing offering the full range of end to end logistical services.
- Continued investment in people and industry relevant skills through our dedicated Training Academy.
- Well positioned across different markets, with a strong growth focus in E-Commerce and MIB sectors.
- Long-term contractual relationships with a diversified blue chip customer base.
- Attractive financial profile with sector leading margins and consistent record of delivering growth both organically and through targeted acquisitions.
Eddie Stobart Logistics plc
Alex Laffey, Chief Executive Officer, Damien Harte, Chief Financial Officer
+44 (0)1925 605400
Nick Hasell/Alex Le May/ Matthew O’Keeffe
+44(0)20 3727 1340
Cenkos Securities Plc
Elizabeth Bowman / Jeremy Osler
+44 (0)20 7397 8928