Eddie Stobart Logistics 2017 interim dividend
Operational Highlights
Successful initial public offering (IPO) on the Alternative Investment Market (AIM) completed on 25 April 2017 and supported by blue chip institutional investors raised £130m for the Company, used primarily to reduce gearing, partially fund the acquisition of iForce Group and provide Eddie Stobart with a financial platform to support its growth ambitions.
Experienced plc board in place with Philip Swatman joining as Chairman and Stephen Harley and Christopher Casey as Non-Executive Directors.
Acquisition of iForce Group for total consideration of £44.9m, a market leading provider of E-Commerce solutions, providing a strong platform for Eddie Stobart to develop its offer to existing and new customers in this growing sector.
Strong rolling pipeline of potential new business weighted towards strategic growth in E-Commerce and MIB.
Post period end, acquisition of a 50% interest in Speedy Freight, which offers nationwide B2B express freight services and supports Eddie Stobart's capability to move urgent, time critical and pallet sized loads.
Further investment into Eddie Stobart's Training Academy, including the acquisition post period end of the remaining interest in The Logistics People staffing business, to attract and retain quality staff for both Eddie Stobart and the wider commercial market.
Financial Highlights
First half results in line with expectations.
Continuing double digit turnover growth with Underlying Revenue up 13% to £286.8m (2016: £253.6m). Reported revenue increased to £286.8m from £266.4m in the corresponding period in 2016.
Underlying EBIT increasing 14% to £16.9m (2016: £14.8m). Reported profit from operating activities; including exceptional items reduced from £10.2m to £5.6m and Loss for the period of £6.3m (2016: profit for the period of £1.7m) mainly due to the £12.6m of exceptional items, principally relating to the IPO and associated refinancing.
Significant increases in our targeted areas of MIB and E Commerce, with Underlying Revenue growing 22% and 51% respectively
Underlying EBIT margin improving to 5.9% (2016: 5.8%).
Free Cash Flow4 of £11.1m representing 56% of Underlying EBITDA (2016: (£3.4m)).
Underlying Earnings per share of 4.0p. Reported basic earnings per share of (2.5p).
Net debt of £97.7m (2016: £186.8m).
Interim dividend of 1.4p per share payable on 20 October 2017 to shareholders on the register on 8 September 2017.
