Stobart prepares for Brexit with expansion in Europe

Eddie Stobart, the Warrington-based distribution group, said it has made good progress in the year to November 30, 2017.

And it announced plans to expand its continental European business in a bid to mitigate any negative effects of Brexit.

Underlying turnover rose from £549m to £624m, while adjusted profilts before tax of £37.8m compared with £24m the previous year.

These were after exceptional items and amortisation.

Net debt was reduced from £165.5m to £109.5m.

The group declared its full year results were in line with expectations, and highlighted its strong underlying revenue growth.

During the financial year Stobart renewed around £41m of existing contracts and secured an additional £89m of new volume with existing and new customers.

Revenue growth was particularly strong in the manufacturing, industrial and buil sectors, which delivered a 37% uplift, and in e-commerce, which yielded a 111% improvement.

The group also completed the acquisitions of iForce, Speedy Freight and Logistic People which, it said, broadens is capabilities, with all performing to expectations.

Its warehousing storage capacity increased by around 17% across a number of new sites, adding further capacity

·Today’s report also revealed that the group has invested in technology solutions to enhance operational efficiency, support business growth and simplify back office processes.

And it said it continues to invest in recruiting and upskilling its existing employees through a broad range of courses delivered at its training academy in Warrington, and at its new second facility in the Midlands

·It proposes to offer shareholders a final dividend of 4.4 pence per share making a total of 5.8 pence per share for the full year, which it says is in line with its progressive dividend policy,.

Chief executive Alex Laffey said today: “We have made good progress in implementing our strategy of becoming a leading provider of end-to-end supply chain solutions.

“This has been demonstrated by our performance over the past 12 months, especially within our two key growth sectors, manufacturing, industrial and bulk, and E-commerce.

“Overall, we are pleased with our progress in 2017.”

He added: “The new financial year has started well and in line with the board’s expectations.”

Chairman Philip H. Swatman also outlined plans to expand further into continental Europe. He said: “Whilst our existing business in continental Europe is small, we have ambitions to develop this, replicating our successful model in the UK.

“We will be keeping the Brexit position under review but, to date, we have seen no significant impact from Brexit on our business.”