Eddie Stobart has reported strong contract retention and growth ahead of its year-end trading update, expected in January 2018.

In its Retail division, the company has won a new three-year contract with Homebase, starting in January 2018 to supply logistics services to 230 stores. It is looking to expand this by exploring opportunities with Homebase’s suppliers.

In addition, the business said it now provides services to most of the UK’s major supermarket chains.

Consumer sector performance has seen re-secured work with long-standing customers such as Britvic and Coca-Cola, with volumes “in line with expectations” in the run-up to Christmas peak.

The company’s warehousing network is also operating at “optimum utilisation levels”, with investment being made to expand capacity. It has signed a new 10-year warehousing contract with existing customer Moy Park, in addition to new wins from C&D Foods and Novells.

In the Manufacturing, Industrial & Bulk sector, Eddie Stobart said it sees “significant opportunities for growth” as customers look to outsource parts of their supply chain. It has won new contracts with Hanson, Argent Energy and Novelis.

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E-commerce continues to be a key growth area for the business, boosted by the acquisition of retail logistics management group iForce in April.

New five-year contracts have been secured with MedicAnimal and Prezzybox with an anticipated aggregate value of around £20m, while other successful tenders are anticipated to result in new contracts with average lengths of three years.

Additional warehousing capacity created at an iForce site in Corby has also been snapped up immediately by the existing iForce customer base.

“We are continuing to leverage iForce customer relationships resulting in Eddie Stobart supporting Fortnum & Mason in delivering its hampers and gifts in the lead up to Christmas,” the company’s trading update said.

“iForce and Speedy Freight, the B2B express freight business acquired in July 2017, continue to offer further cross-selling opportunities to Eddie Stobart's broader transport and warehousing business.”

In its Special Operations sector, Eddie Stobart has won new contracts to provide logistics and technical services to Mercedes-Benz and the FIA for the next Formula One season and continues to provide support to other racing teams.

Chief executive Alex Laffey said: "We are pleased with our progress in securing new customers as well as retaining and growing business with existing customers, in line with expectations. We look forward to supporting our customers as we head into our peak trading period."

Having completed an initial public offering (IPO) on the Alternative Investment Market in April, the haulier saw revenue climb 7.7% to £287m (2016: £266.4m) in the six months to 31 May 2017.

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