Logistics group happy to signal close on a difficult chapter
Warrington-based logistics group Eddie Stobart announced its results for the year to November 30, 2019, today saying it was pleased to be putting a difficult period behind it.
The haulier was rescued from collapse in a December 2019 takeover by majority shareholder DBay in a deal which provided a £55m loan and saved 6,500 jobs.
The firm was struggling to repay debts of more than £200m and its shares had been suspended since August after an accounting discrepancy was uncovered.
Today’s results revealed a £76.1m increase in turnover of £857.5m, but a £216.7m increase in its pre-tax loss of £238.9m.
Net debt also rose by £54.9m to £214.5m.
No dividend is recommended.
The group incurred exceptional costs within administrative expenses of £200.2m, including the £169.2m impairment charge disclosed at the half year mark.
It said the DBay transaction has provided £70m of additional liquidity.
Adrian Collins, chairman of AIM-listed Eddie Stobart Logistics, said: “For obvious reasons much of this report deals with the past and makes for difficult reading but we are pleased to be putting these issues behind us.
“Since I have joined the board, I have been impressed with the calibre and dedication of the Eddie Stobart leadership team and look forward to the future with optimism.
“I would like to thank shareholders for their continued support as the company works towards becoming an investment company.”