Eddie Stobart posts solid growth for 2017 financial year

Eddie Stobart posted its full year results for the year ended 30 November on Tuesday, which fell in line with expectations with strong underlying revenue growth.

The AIM-traded firm said it renewed £41m of existing contracts and secured an additional £89m of new volume with existing and new customers during the year.

It saw “significant” revenue growth within its manufacturing, industrial and bulk (MIB) division, which rose 37%, while its e-commerce unit rocketed ahead 111%.

The company completed the acquisitions of iForce, Speedy Freight and Logistic People during the period, which the board said broadened the group’s capabilities, with all said to be performing to expectations.

Eddie Stobart’s warehousing storage capacity increased by 17% across a number of new sites, adding further capacity during the year.

The firm also invested in technology solutions to enhance its operational efficiency, support business growth and simplify its back office processes.

Its board said it was continuing to invest in recruiting and upskilling its existing employees through a broad range of courses delivered at its training academy in Warrington, and its new second facility in the Midlands.

Looking at the books, on an underlying basis Eddie Stobart’s revenue rose to £623.9m from £549m in the prior year, while its EBIT was ahead to £48.5m from £41.3m.

The company’s EBIT margin was slightly higher,a t 7.8% compared to 7.5%.

Adjusted profit before tax was up to £37.8m from £24m, while adjusted earnings per share rose to 9.8p from 7.9p.

The board proposed a final dividend of 4.4p per share, making for a total of 5.8p per share for the full year, in line with Eddie Stobart’s progressive dividend policy.

“We have made good progress in implementing our strategy of becoming a leading provider of end-to-end supply chain solutions,” said chief executive Alex Laffey.

“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.”

Laffey said overall, the board was pleased with the company’s progress in 2017.

“The new financial year has started well and in line with the board's expectations.”