Eddie Stobart Logistics’ financial report: net debt slightly grew during the 6 months under new ownership
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GreenWhitestar Acquisitions Limited (GWSA), the holding company for Eddie Stobart’s trading entities, has published its financial report about the first half of 2020 – which was also the first 6 months of trading under the new ownership structure.
The new ownership structure and the new management team led by William Stobart (Executive Chairman) and Brian Corrway resulted in revenues of c.£407m for the first six months of the financial year. The underlying EBIT for the six months from the unaudited management accounts is above £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 at period end 31 May 2020 was c.£236m (30 November 2019: £214.5m), 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 significant investments in the business, with a highlight for the period being the acquisition of the “Eddie Stobart” and “Stobart” brands.
Eddie Stobart Limited has benefited from intense exposure to fast-moving consumer and grocery sectors and 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.
Photo: EDDIE/ Flickr