The stobart name in Eddie stobart logistics is effectively leased to the company from the stobart group. Seriously the structure past and present confuses the life out of most people but as a cash shell esl owns 49% of the logistics company that was, and all of its many subsideries via 49% holding in green white star holdings dbay holds 51% it sounds worse on the face of it than it actually is, the company that was trading a year ago was basically worth half to the now esl shell ( and shareholders in the same ) After the deal was done than it was prior to suspension (70p sp) The so called black hole in the accounts was £2m not some of the ridiculous sums I’ve seen mentioned and yes it’s carrying debt but I don’t actually see the debt as that big of a problem in the grand scheme of things and with regard to the debt the current trading situation will be helping to ease that burden. Turnover will be massively up in my opinion general consensus was that they was looking at a big improvement before the virus the new management run a tight ship and it will be run to the same high standard as it was upon initial floatation ( essentially the same team ) they will be making cost savings just by how they run things let alone the huge savings on fuel etc. I could pull this apart all night long and the only negative would be the pik loan financing arrangement which in itself will need addressing but regardless doesn’t justify the decimation of the sp I would have thought at any other time over the last few years we would already been back above 25p a share by now but we are where we are and I can only see one direction of travel for this.
The Company has been informed by DBAY that, following discussion with the Company's Shareholders, DBAY intends to provide the Shareholders with the opportunity to participate in an economic interest of up to 49% of the PIK Facility as soon as reasonably practicable (and in any case within 6 months) following Completion, simultaneously with, and conditional upon, the conversion of the Company to an investing company for the purposes of the AIM Rules, with DBAY appointed as the investment manager.
They don’t need it quick the dbay deal has seen to that it’s case of if dbay want a quick return on there investment and given the previous mooted plans now would be a good time to boost the ole bank account lots of bargain acquisitions to be had over the coming months and they have a majority share in an in demand sector.
I don’t have any specific knowledge but general musings seems to be the most likely outcome would be the sale of greenwhitestar holdings which as we know holds the Esl logistics business ( incidentally massively up in value since this whole saga started ) but as there is issues regarding lease of name it would be solely for the operations and not the Esl name. How that would leave the shell company I’m unsure it would certainly give a massive boost to the sp and also a huge boost financially to the shell as it has been mentioned before this scenario lends itself to the investment company plan .... or should I leave the red wine alone?
Truthfactory - or .... girteka come in and buy Esl operations ( greenwhitestar) from Esl and Dbay as they have no interest in the Eddie stobart name itself but do want the operations and U.K. footprint ????
Sub contractors! Nothing to be concerned about that means that they have used up all the capacity that they have both in house drivers and agency along with all available units are in the road! If you check out the number of units that they have and then look at how many trailers they have you will see they have half as much again of trailers to units at least! They are flat out !!! Hence the advertising for drivers