Debt at Eddie Stobart Logistics owner grows
Eddie Stobart Logistics parent company GreenWhitestar Acquisitions (GWSA) said that net debt had widened during the first half of the year.
For the six-months ending 31 May 2020 net debt at GWSA – which owns a 49% stake in Eddie Stobart Logistics – stood at £236 million, compared to £14.5 million on 30 November 2019. This it said was a reflection of the non-recurring costs of the re-organisation of the group and the continued investments made during the period.
GWSA said it had turnover of £407 million for the first six months of its financial year and posted an EBIT of £8 million for the same period.
GWSA said it had successfully completed phase one of the business re-organisation, which had resulted in a “significant reduction in the cost base and the long-term property liabilities”.
It also said it had made “important investments”, including the acquisition of the Eddie Stobart and Stobart brands, which it said would deliver “significant future cost savings” and would allow the group to further differentiate the business from its competitors.
Divisionally, GWSA said that Eddie Stobart had benefited from “strong exposure” to FMCG and grocery sectors as well as a growing demand for warehousing.
In iForce GWSA said that the e-commerce focused division had “continued to grow” and it was continuing to benefit from the move to online sales which has been accelerated by lockdown.
It also said that The Pallet Network (TPN) was currently delivering record volumes and was growing market share.
Last month Eddie Stobart told the Stock Exchange that for financial year 2019 the company made a pre-tax loss of £238.9m, compared to a pre-tax loss of £22.3 million in its restated financial year in 2018.