Eddie Stobart Logistics now a "stand-alone business"

Eddie Stobart Logistics has successfully completed its transformation into a stand-alone business after the acquisition of a 51% stake in the operator by private equity firm DouglasBay Capital on 10 April 2014, according to its parent company.

Greenwhitestar UK (which ultimately is owned by DouglasBay Capital Fund) made the statement in newly filed accounts at Companies House, which revealed that Eddie Stobart Logistics achieved a turnover of £394.4m and a pre-tax profit of £24.4m for the period from 10 April 2014 to 30 November 2014 (including amortisation, restructuring and transaction costs).

Had the business been operating for a full financial year, the report's authors estimate turnover would have been £591.5m with a pre-tax profit of £36.6m (again, including amortisation, restructuring and transaction costs).

Prior to DouglasBay Capital's purchase of a controlling stake in the business, Eddie Stobart Logistics achieved a turnover of £559.6m for the 12 months ending 28 February 2014 and a pre-tax profit of £21m.

General transport business performed well

William Stobart’s director’s report notes that the Eddie Stobart Logistics general transport business “operated in line with management expectations”, with contracts retained with customers including Coca-Cola, Britvic, Crown and Procter & Gamble. The division has a network utilisation of 86.3%.

Its ports and container business “performed strongly” with “revenue up against expectations”. Stobart noted a challenge in increasing own-driver capacity in line with demand.

Its contract logistics and warehousing business “performed well” securing new contracts - with Stobart revealing that its Crown Braunstone contract was regained just six months after it had initially transferred to another provider.

Stobart also referred to developments at its Automotive division, which has subsequently been sold to BCA Marketplace.

He said that the market it operates in “remains challenging, but is showing signs of improvement” and added that it had renewed a “significant” contract, which was loss-making with “rates increased to commercially viable levels”.

Walon, the business that is in effect Stobart Automotive, reported a turnover of £47.1m for the nine months ending 30 November 2014, and made a pre-tax loss of £1.3m.

Walon is now held by BCA Automotive and William Stobart has now left its board of directors.