LONDON (Alliance News) - Eddie Stobart Logistics PLC boosted its interim dividend Thursday after it swung to a profit amid a revenue jump and the falling away of listing costs.
For the six months ended May, the supply chain firm swung to a pretax profit of GBP2.9 million from a GBP7.6 million loss the year prior. This was after revenue rose 25% to GBP359.3 million from GBP286.8 million the year before.
Profit performance was also helped by a sharp fall in exceptional items in the period. One-off costs fell to GBP4.4 million from GBP8.0 million the year prior. This was after the year before saw GBP3.7 million in costs associated with the company's initial public offering in London. Of the exceptional costs in the most recent period, GBP3.9 million was associated with its acquisitions activity.
Eddie Stobart Logistics was spun-out of Stobart Group PLC in April 2017 at a price of 160 pence per share, initially valuing the firm at GBP573 million. Shares in Eddie Stobart were flat at 135.00 pence on Thursday.
Eddie Stobart proposed a 1.54 pence interim dividend, up 10% from 1.40 pence the year prior.
"We are pleased to have delivered a strong first-half performance as we continue to implement our strategy of becoming a leading provider of end-to-end supply chain solutions," Eddie Stobart Chief Executive Officer Alex Laffey said. "This has been demonstrated year to date, as we have won new contracts with blue chip customers adding an annualised GBP158 million of new business."
"The recent acquisition of The Pallet Network further adds to the range of services we provide to our customers across the supply chain," Laffey added.
Eddie Stobart acquired Pallet Network for GBP52.8 million in cash in June.
Laffey emphasised that performance will be weighted towards the second half of the year. As a result, the first half has absorbed the costs for setting up new contracts.
"The second half period has started well and the board remains confident of delivering full-year results in line with market expectations", Laffey added.