(Alliance News) - Eddie Stobart Logistics PLC on Monday said 49% indirectly owned associate GreenWhiteStar Acquisitions Ltd swung to a profit in the first half following significant reductions in its cost base.
GreenWhiteStar Acquisitions is a holding company of the Eddie Stobart, iForce, Pallet Network and Logistics People operating businesses. Eddie Stobart, with its iconic green and white lorries, is a supply chain, transport & logistics business.
Underlying earnings before interest, tax, depreciation and amortisation for the half year ended May 31 was GBP16.6 million, swinging from a loss of GBP6.3 million a year before.
GWSA said: "The turnaround in profitability was driven by a significant reduction in the cost base through the increased use of internal capabilities such as the recruitment of drivers and warehousing staff, the streamlining of duplicated roles within the organisation, and the replacement of loss-making work with profitable volumes from existing and new clients."
Revenue was GBP416.5 million, down marginally from GBP421.1 million a year prior. Eddie Stobart posted revenue of GBP309.5 million, down from GBP421.3 million a year before.
GWSA Executive Chair William Stobart said: "The past six months have shown the strength of our differentiated business model which has allowed us to grow existing customer relationships, win new business, return the GWSA group to profitability and overcome challenges presented by Covid-19."
The chair added: "Looking ahead, we are confident that our renewed focus on our historic core capabilities as transport and logistics services provider for the fast-moving consumer goods and grocery sectors, and as a leading player in e-commerce logistics and fulfilment, will allow us to drive profitable growth going forward."
For the year to November 30, GWSA expects an underlying earnings before tax, depreciation and amortisation in excess of GBP33 million.
Eddie Stobart shares were up 31% at 8.70 pence each in London on Monday morning.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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