Eddie Stobart Logistics PLC Trading Update of Associate Company (3406V)
August 06 2020 - 1:00AM
UK Regulatory
TIDMESL
RNS Number : 3406V
Eddie Stobart Logistics PLC
06 August 2020
6 August 2020
Eddie Stobart Logistics plc
(the "Company")
Trading Update of Associate Company
Eddie Stobart plc (the "Company") has been notified by its 49%
indirectly owned associate GreenWhiteStar Acquisitions Limited
("GWSA") that it has published the following statement on its
website.
"On May 31, 2020, GreenWhiteStar Acquisitions Limited (" GWSA")
has completed the first half of the 2020 financial year and the
first 6 months of trading under the new ownership structure and the
new management team led by William Stobart (Executive Chairman) and
Brian Corrway (Chief Financial Officer). As a group, GWSA has
traded successfully throughout the lockdown and continued to
maintain excellent service levels to customers.
GWSA had revenues of c.GBP407m for the first six months of the
financial year. The underlying EBIT for the six months from the
unaudited management accounts is expected to be at least GBP8m,
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 at period end 31 May 2020 was c.GBP236m (30 November
2019: GBP214.5m), reflecting the non-recurring costs of the
re-organisation 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 re-organisation 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.
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. We believe the business is well placed to
continue to grow in the current climate of economic
uncertainty.
Finally, GWSA has reduced its interest in Puro Ventures Ltd
(PVL), which trades as Speedy Freight, from 47.5% to 20%. The
shareholders' obligations under put and call options, which would
if exercised have required GWSA to purchase the 52.5% of PVL
shares, have been released. Going forward, GWSA retains the right
to appoint two directors to the PVL board, and PVL and GWSA both
intend to continue to grow and benefit from their close working
relationship."
Further enquiries:
Eddie Stobart Logistics plc via FTI Consulting
FTI Consulting (0)20 3727 1340
Nick Hasell / Alex Le May / Matthew O'Keeffe
Cenkos Securities Plc (Nomad & Broker) (0)20 7397 8900
Nicholas Wells / Giles Balleny / Harry
Hargreaves
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTUPURGRUPUUAQ
(END) Dow Jones Newswires
August 06, 2020 02:00 ET (06:00 GMT)
Logistics Development (LSE:LDG)
Historical Stock Chart
From Apr 2024 to May 2024
Logistics Development (LSE:LDG)
Historical Stock Chart
From May 2023 to May 2024