Half Year Trading Update

RNS Number : 8669E

Eddie Stobart Logistics PLC

09 July 2019

 

The information contained within this announcement (the "Announcement") is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this Announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.

9 July 2019

Eddie Stobart Logistics plc

("Eddie Stobart" or the "Group")

Half Year Trading Update

Eddie Stobart Logistics plc, a leading UK end to end supply chain, transport and logistics group provides the following trading update for the half year ended 31 May 2019.

Half Year Results and Trading

Group revenues for the period increased by 25% versus the comparable period in 2018. This was a result of organic growth and a full first half contribution from The Pallet Network. On a like-for-like basis revenues were up 8%, reflecting continuing organic growth and a number of new contract wins.

At an adjusted EBIT level the first half results are expected to be towards the lower end of management expectations. This is partly due to slower than anticipated productivity improvements in our Contract Logistics and Warehousing business and the short term adverse effect on the operational efficiency of our transport network from exiting, in early March, a problematic contract. However, as in previous years our volumes will be weighted substantially towards the second half of the year and the Company expects to deliver full year results in line with the Board's expectations.

The group's net debt position at 31 May 2019 was £154m (30 November 2018: £160m).

Prior Year Adjustment

Following the appointment of our CFO, Anoop Kang on 1 April 2019 a review has been carried out into the Group's prior year financial statements. This review has highlighted matters which will be addressed by means of a Prior Year Adjustment. The likely cumulative effect on the results for the year ended 30 November 2018 will be to reduce adjusted EBIT by approximately £2m. There will be an adjustment to retained earnings as at 30 November 2017 of approximately £11.5m, primarily relating to the lease accounting involving four legacy sites. The majority of these adjustments are non-cash and do not affect our banking covenants. Although the 2019 adjusted EBIT impact of these matters is £1.6m we expect to deliver a full year result in line with the Board's expectations. Further details will be included in our Interim Report.

The Group's interim results for the half year ended 31 May 2019 will be released on 29 August 2019.

Eddie Stobart Logistics plc	(0)1925 605400
Alex Laffey, Chief Executive Officer
Anoop Kang, Chief Financial Officer
FTI Consulting	(0)20 3727 1340
Nick Hasell / Alex Le May / Matthew O'Keeffe
Cenkos Securities Plc (Nomad & Joint Broker)	(0)20 7397 8900
Nicholas Wells / Giles Balleny / Harry Hargreaves
Berenberg (Joint broker)	(0)20 3207 7800
Chris Bowman / Toby Flaux / Simon Cardron

 

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