Eddie Stobart Logistics has seen its push around manufacturing, industrial and bulk (MIB) pay off handsomely, with the segment now its biggest turnover contributor, the firm said today (10 April).
In the full year to 30 November 2017, the firm, which trades as Eddie Stobart, saw turnover growth of 37% in MIB, and 111% in its e-commerce operation - its other major focus since returning to the Alternative Investment Market in April 2017.
MIB accounted for £182m, or 29% of full year turnover (2016: £132.7m), supplanting its mature retail business, which at £168.6m (2016: £152.2m) contributed 27% of turnover in the period.
E-commerce, off the back of its iForce purchase, had a stellar period too, more than doubling from £49.1m in 2016 to £103.4m and contributing 17% of the logistic firm’s annual revenue.
Despite this, Eddie Stobart stated in its accounts that in regards its retail segment, which grew in revenue terms by 11% year-on-year, ‘we now work with most of the major UK retailers’.
In a period that saw it open its second training school, buy half of Speedy Freight, and buy out the Logistic People, Eddie Stobart also struck a deal with Canute Haulage Group on 7 August 2017 in a bid to strengthen its MIB offer.
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The deal saw 38 tractors and tankers, 53 trailers, approximately 50 employees and the licence to occupy a Brentwood, Essex, address transfer to Eddie Stobart.
The acquired assets and liabilities were recorded initially at £6m each, with the business itself acquired for just £1 plus an undisclosed transaction cost.
In regards reports that Eddie Stobart’s name might disappear from the business after February 2020, the accounts state “the team at Eddie Stobart is passionate about our name and the leading brand.
“However, we also recognise that following the introduction of our new strategy and the recent acquisitions, we need to review our position given the broader range of supply chain service we now offer.”
Alex Laffey, chief executive of Eddie Stobart, said: "We have made good progress in implementing our strategy of becoming a leading provider of end-to-end supply chain solutions. This has been demonstrated by our performance over the past 12 months, especially within our two key growth sectors, Manufacturing, Industrial and Bulk, and E-commerce.
"Overall we are pleased with our progress in 2017. The new financial year has started well and in line with the board's expectations."
12 month highlights
Turnover: £623.9m (2016: £570.2m). If the impact of ending its Irish retail service is stripped out, 2016 revenue was £549m.
EBITDA adjusted for Irish retail business: £55.3m (2016: 47.4m)
Operating profit: £26.6m (2016: £26.8m)
Pre-tax profit: £9.9m (2016: £11.2m)
Proposed dividend per share: 5.8p
Net debt: reduced from £165.5m to £109.5m
