Stobart sees revenues increase by 35% over last year

Eddie Stobart

Revenues at Warrington based Eddie Stobart Logistics rose by 35% last year.

The firm issued a trading statement for the financial year to the end November.

Group revenues grew by 35% to approximately £843m, ahead of market expectations.

Revenues excluding contributions from acquired subsidiaries, iForce, Speedy Freight and The Pallet Network, increased by 18%.

The growth reflects significant and broad-based growth across all our sectors with £162m of new contract wins during the year.

The Pallet Network, which was purchased in June, made a notable contribution to the strategy of building a more resilient network and has traded in line with expectations.

The firm said it will continue to invest in transport operations, warehousing network and technology to support our future growth plans.

Net debt as at period end was approximately £154m, reflecting working capital investment required to support the significant levels of sales increase and the additional debt associated with the purchase of TPN.

As anticipated, margins improved in the second half following costs incurred in the first half in implementing these major new customer contracts. Margins are expected to improve further in 2019. Underlying EBIT for the period was broadly in line with market expectations.