Eddie Stobart Logistics has returned to profitability and put its “past challenges” behind it, the company announced this week.

In a trading update, GreenWhiteStar Acquisitions (GWSA), which includes Eddie Stobart Logistics, iForce, The Pallet Network and The Logistics People businesses, unveiled its half year results to 31 May 2020.

The half year results show turnover down by 1.1% year-on-year from £421.1m to £416.5m with underlying EBITDA for the period at £16.6m, compared to a loss of £6.3m in the same period in 2019, and underlying EBIT at £10.6m, compared to a loss of £11.6m in the first half of 2019.

Net debt rose from £236.9m at the time of the DBAY transaction in December 2019 to £242.7m as of 31 May 2020. GWSA attributed this rise to non-recurring re-organisation costs and investments.

The group said it had delivered a “strong performance” in the six month period to 31 May 2020, with the impact of Covid-19 and new and existing customers helping to drive up demand for logistics and transport service. This had offset any loss of revenue from its strategy to exit lossmaking contracts, the group added, promising “further benefits” in the future from its turnaround plan.

GWSA said the initial phase of its business re-organisation is now complete, adding that it had seen “significant reduction” in its cost base through increased use of internal capabilities.

Eddie Stobart Logistics had also benefitted from increased warehousing demand, a reduction of property rental liabilities in the period and new new business wins in the UK with William Morrison, Hillebrand, McBride and in its EU business with Nike and Amazon.

The group added that The Pallet Network has seen “record breaking” pallet volumes, extended the central cross-dock hub by 75,000 sq ft and invested in new branding for the business.

GWSA executive chairman William Stobart, pictured, 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.”

Stobart added: “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.”