LONDON (Alliance News) - Transport firm Eddie Stobart Logistics PLC hiked its dividend Thursday after profit more than doubled as revenue surged on new contract wins and acquisition gains.
For the year ended November, pretax profit more than doubled to GBP23.6 million from GBP9.9 million the year prior. This was after revenue rose 35% to GBP843.1 million from GBP623.9 million the year before.
Revenue performance was helped by new contract wins - with an annualised total revenue of GBP162 million - as well as organic growth from existing customers and the addition of acquisitions.
"We were pleased with our strong performance in 2018, during which we made significant progress in delivering our strategy of becoming a full-service logistics and supply chain organisation," Eddie Stobart Chief Executive Officer Alex Laffey said.
Eddie Stobart proposed a 4.76 pence final dividend per share, up 8.2% from 4.40p the year prior. For the full year, the dividend rose 8.6% to 6.30p from 5.80p the year before.
"We continue to develop our end-to-end supply chain capabilities and in June acquired The Pallet Network, which gave the group a presence in pallet distribution across the UK and provides cross-selling opportunities to serve our customers' growing needs," Laffey added. "All of our acquired businesses traded in line with expectations during the year and delivered their planned synergies."
In June, Eddie Stobart agreed to buy Pallet Network Group Ltd for GBP52.8 million.
"Whilst we remain mindful of the current political and economic uncertainty, we are confident that our unique operating model provides us with the flexibility to respond rapidly to changing market conditions," Laffey added. "The new financial year has started in line with the board's expectations."
Shares in Eddie Stobart were 0.3% higher at 98.30 pence on Thursday.