Eddie Stobart Logistics plc (AIM: ESL), a leading UK end-to-end supply chain, transport and logistics group, announces an update on its position following its announcement of 23 August 2019.
On 23 August 2019, the Company announced, amongst other things, that work was ongoing to clarify the impact of certain accounting-related items following the Group’s review of the unaudited interim results for the six months to 31 May 2019 (the “HY19 Interim Results”).
Whilst work remains ongoing in this regard, the Company expects that revenue for the first half will be approximately £450 million and Underlying EBIT1 for the same period is expected to be in the range of £10 to £11 million. Net debt at 31 May is expected to be approximately £155 million.
The Group Auditor’s review is not yet complete, and any impact on the Company’s expectations for the HY19 Interim Results has not yet been determined.
The Board expects to be able to publish the Group’s full interim results following further clarity on the matters set out below.
Trading in the Company’s shares will remain suspended pending release of the HY19 Interim Results.
The Board has also re-assessed the Group’s outlook for the full year ending 30 November 2019 (“FY19”).
As in past years, a second half weighting to the financial year is anticipated, however the Board continues to expect the Underlying EBIT1 for FY19 will be significantly below the Board’s expectations. The key factors contributing to this lower than expected profitability include:
- An adverse performance against an ambitious budget alongside delays in the implementation
of operational efficiencies; - Provisions made against customer recoveries, a significant proportion of which relate to underperforming contracts which have been exited during the year; and
- Delays on a significant property consultancy project and lower than planned property utilisation.
As announced on 9 September 2019, the Eddie Stobart has received a preliminary expression of interest from DBAY Advisors Limited (“DBAY”) in relation to a possible offer to be made by funds managed by DBAY for the entire issued, and to be issued, share capital of Eddie Stobart.
There can be no certainty either that an offer will be made nor as to the terms of any offer, if made. A further announcement will be made when appropriate.
