Eddie Stobart Logistics plc has provided a trading update for the financial year ended 30 November 2018. The numbers are subject to audit, but Group revenues for the financial year grew 35% to approximately £843 million (2017: £623 million), ahead of market expectations
Revenues, excluding contributions from acquired subsidiaries iForce, Speedy Freight and The Pallet Network (TPN), increased by 18%.
This reflects significant and broad-based growth across all sectors with £162 million of new contract wins during the year, organic growth within the existing customer base and continuing strong performance by acquired subsidiaries.
TPN, which was purchased on 29 June 2018, has made a notable contribution to a strategy of building a more resilient network and has traded in line with expectations.
The Company has continued to invest in its transport operations, warehousing network and technology to support future growth plans. Net debt as at period end was approximately £154 million (2017: £109 million), reflecting working capital investment required to support the significant levels of sales increase and the additional debt associated with the purchase of TPN.
As anticipated, margins improved in the second half following costs incurred in the first half in implementing these major new customer contracts. Margins are expected to improve further in 2019.
Underlying EBIT for the period was broadly in line with market expectations. The Group’s audited results for the year ended 30 November 2018 will be released on 28 March 2019