Reorganisation of logistics group progressing

GreenWhiteStar Acquisitions, the acquisition vehicle involved in the rescue of Warrington-based transport group Eddie Stobart last December, has announced figures for the first six months of trading under the new ownership structure and new management team led by William Stobart and Brian Corrway.

It said it has traded successfully throughout the lockdown and continued to maintain excellent service levels to customers.

GWSA had revenues of around £407m for the first six months of the financial year.

It said the underlying EBIT for the six months from the unaudited management accounts is expected to be at least £8m, before the further positive effect of IFRS 16, and marks a welcome return to positive underlying EBIT for the first half of the year.

Net debt was approximately £236m, up from £214.5m at November 30, 2019, reflecting the non-recurring costs of the reorganisation of the group and the continued investments made during the period to strengthen the business going forward.

In the first six months GWSA successfully completed phase one of the business reorganisation which has resulted in a significant reduction in the cost base and the long-term property liabilities.

At the same time, the team has made important investments in the business, with a highlight for the period being the acquisition of the Eddie Stobart and Stobart brands, which will deliver significant future cost savings and allow the group to further differentiate the business from its competitors.

GWSA’s subsidiary, Eddie Stobart Limited, has benefited from strong exposure to fast moving consumer and grocery sectors and a growing demand for warehousing.

It said iForce has continued to grow, is performing strongly and continues to benefit from the move to online sales which has been accelerated by the lockdown.

The Pallet Network is currently delivering record volumes and is growing market share. GWSA said it believes the business is well placed to continue to grow in the current climate of economic uncertainty.

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