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Robert.Jervis_43227 Oct 12

Eddie Stobart helps drive logistics group GWSA

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The holding group behind logistics firm Eddie Stobart has announced it has swung back to profitability in the first half of the year as it cashed in on higher demand for transport services during the Covid-19 crisis
Green White Star Acquisitions (GWSA) controls Eddie Stobart, iForce, The Pallet Network and The Logistics People businesses.

It reported that in the six months to May 31, revenues were £416m.5, a 1.1% reduction against comparative figures a year ago, while underlying EBITDA was £16.6m, against a loss of £6.3m a year ago, representing a 363.5% turnaround.

GWSA said the results showed a strong performance against the backdrop of COVID-19, with the business benefiting from increasing demand for high quality logistics and transport services.

It said it returned to profitability, reflecting progress on its turnaround plan, with further benefits expected to come.

GWSA generated positive operating cash flow in the period and initiated repayment of debt since the period end.

Looking ahead, it anticipates underlying EBITDA in excess of £33m and a reduction in net debt for the year to November 30, 2020.

It said the initial phase of business re-organisation following the rescue deal for Eddie Stobart is now complete, involving a significant reduction in the cost base through increased use of internal capabilities.

Eddie Stobart achieved new business wins in the UK with Wm Morrison, Hillebrand, McBride and in its EU business with Nike and Amazon. It also exited non-core activities and loss-making contracts.

The Eddie Stobart business contributed £309.5m of total revenues, and £6.5m of EBITDA.

William Stobart, executive chairman of GWSA, said:

“I am pleased to be back leading the GWSA Group.

“These results show we have put past challenges firmly behind us.

“The past six months have shown the strength of our differentiated business model which has allowed us to grow existing customer relationships, win new business, return the GWSA Group to profitability and overcome challenges presented by COVID-19.

“Looking ahead, we are confident that our renewed focus on our historic core capabilities as transport and logistics services provider for the FMCG and grocery sectors, and as a leading player in e-commerce logistics and fulfilment, will allow us to drive profitable growth going forward.”

Highlights

Eddie Stobart:
  • Increased warehouse utilisation and reduction of property rental liabilities
  • Focus on attention to detail and customer service which has strengthened our unique business model
  • New business wins in the UK with Wm Morrison, Hillebrand, McBride and in our EU business with Nike and Amazon
  • Exited non-core activities and loss-making contracts
  • Investment through the purchase of the “Eddie Stobart” and “Stobart” brands
iForce:
  • Centralised the company’s activities into our 850,000 sq.ft. National Fulfilment Centre in Corby
  • Maintained excellent customer service and gained new volumes throughout Covid-19
The Pallet Network:
  • Record breaking pallet volumes in the company’s history whilst maintaining customer service levels
  • Extended the central cross-dock hub by 75,000 sq.ft.
  • Invested in new branding for the business with our Partner Powered Alliance
Logistics People:
  • New management team have increased their supply of labour to GWSA Group and grown external sales