£162m of new contracts help Eddie Stobart sales accelerate

EDDIE Stobart Logistics saw sales race ahead last year as the road haulier was boosted by new contract wins.

The firm posted a 35 per cent rise in full-year revenue to £843 million in the 12 months to November 30, ahead of market expectations.

Excluding contributions from subsidiaries – iForce, Speedy Freight and The Pallet Network (TPN) – sales were up 18 per cent. Underlying earnings for the period were broadly in line with market expectations.

The haulier said the increase was driven by £162m of new contracts across all its sectors.

Net debt as at period end was approximately £154m, up from £109.5m, reflecting working capital investment. The increased investment is needed to support the “significant levels of sales increase” and the additional debt associated with the acquisition of TPN, the firm said.

Eddie Stobart Logistics added that profit margins improved in the second half of the year, following costs incurred in the first half in implementing major new customer con- tracts. Margins are expected to improve further in 2019.

Last year, the firm said bosses were reviewing whether or not to keep the renowned British brand.

Eddie Stobart Logistics, which was spun out of Stobart Group in 2014, has to pay royalties to its former owner for using the name. The current licensing deal ends in 2020.