Eddie Stobart Returns To Profit Business

“Looking ahead, we are confident that our renewed focus on our historic core capabilities as a provider of transportation and logistics services for the FMCG and grocery industries, and as a player leading e-commerce logistics and execution, will allow us to drive profitable growth. before.”

Mr Stobart, son of founder Eddie, took back control of the carrier following an accounting scandal last year in which £ 2million was missing.

The problems led to an investigation of the auditors – KPMG and PwC – and saw Eddie Stobart Logistics’ shares suspended.

A £ 55million bailout deal was struck last December, which saw offshore private equity firm Dbay Advisors buy a 51% stake in Eddie Stobart Logistics – installing Mr Stobart as chairman to oversee recovery.

In the six months to May 31, revenue fell 1.1 pc to £ 416.5million and the underlying pre-tax profit – which excludes one-off costs – fell from a loss of 6 , £ 3million to a profit of £ 16.6million. He did not disclose the statutory benefits.

Net debt, however, fell from £ 236.9million to £ 242.7million due to transaction costs in December via a high interest loan called the PIK note.

The bosses said they wanted to refinance the loan “as soon as possible”.

In May, truck company Eddie Stobart agreed to buy the rights to its own name as part of a £ 10million deal to end confusion over brand ownership.

Previously, the trucking company could only use the Eddie Stobart brand under license from the completely separate Stobart Group, which owns London-listed Southend Airport.

Under the deal, the carrier took control of the name, with Stobart Group planning to rename itself.

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This notice was published: 2020-10-12 09:47:00