Logistics group sees value of acquisitions add to bottom line

Logistics group Eddie Stobart motored to much improved annual results for the year to November 30, 2018.

The Warrington-based business revealed today that revenues jumped from £623.9m to £843.1m, while pre-tax profits rocketed by 138.4% from £9.9m to £23.6m.

The dividend per share will rise by 8.6% to 6.3p per share.

Net debt rose by 45.8% to £159.7m.

The business said strong revenue growth of 35% to £843.1m was driven by new contract wins with an annualised total revenue of £162m, organic growth from existing customers and contributions from acquired businesses.

All customer sectors achieved significant growth with E-commerce revenues growing 65% to £171.0m, retail increasing by 43% to £241.1m, consumer increasing by 26% to £182.1m and MIB growing 16% to £211.1m.

There was also a continued strong performance from the acquired businesses iForce Group, The Pallet Network Group (TPN), The Logistic People and Speedy Freight following successful integration and delivery of planned synergies.

The group said net debt increased to £159.7m reflecting new debt associated with the acquisition of TPN and working capital investment to support year-on-year revenue increase which is expected to normalise in 2019.

Chief executive Alex Laffey said: “We were pleased with our strong performance in 2018, during which we made significant progress in delivering our strategy of becoming a full-service logistics and supply chain organisation.

“We continue to develop our end-to-end supply chain capabilities and in June acquired The Pallet Network, which gave the group a presence in pallet distribution across the UK and provides cross-selling opportunities to serve our customers’ growing needs.

“All of our acquired businesses traded in line with expectations during the year and delivered their planned synergies.”

He added: “Whilst we remain mindful of the current political and economic uncertainty, we are confident that our unique operating model provides us with the flexibility to respond rapidly to changing market conditions.

“The new financial year has started in line with the board’s expectations.”