RE: ESL Broker Report - 154p4 Mar 2020 07:21
Stocksbof52
Posts: 886
Price: 11.75
No Opinion
ESL update...and the re-rate goes on....
Today 00:13
This is why we buy ESL and why i will remain invested for the foreseable future. Think all basher/ de-ramper posts are absurd and have an agenda. At this pps, the 2 forced sellers have given this opportunity for very low entry (mkt cap almost 1/20th of the revenue) for a high revenue generating business. A business that has actually grown last year by 26%, and which will be here for long time. Management is also working on effecencies, which were hampered by the last CEO (Tinkler) trying to take control and swindle share holders - the case ended in court and Tinkler lost). Regardless of what the shae price does in short term...this is excellent buy at this fire sale price.
The Group's revenues were £421.3m for the six months ended 31 May 2019 (2018: £334.5m) which represented growth of 26%.
This revenue growth was driven by the full first half contribution from TPN which was acquired in the second half of 2018 supported by organic growth from existing customers in the underlying business within the consumer segment, and full first half year effect of significant contract wins in 2018.
Three of our four customer sectors grew in comparison to last year:
· Retail revenue grew 28% to £128.5m (2018: £100.4m) driven by the acquisition of the TPN which, contributed a strong first half result of £32.2m. Revenue from the underlying business (excluding TPN) decreased by £4.2m.
· Consumer revenue was £114.4m (2018: £69.2m), a 65% increase compared to 2018 as significant contract wins in early 2018 including new contracts with PepsiCo and Britvic translated to a full six months of revenue in 2019.
· E-commerce revenue grew 18% to £94.2m (2018: £79.6m) driven by the acquisition of TPN which contributed £17.6m. The underlying business (excluding TPN) decreased by £3.0m. E-Commerce now makes up 22% of total Group revenue.
The now have very £106 liguidity, and a loan of £200m to service over the next 4/5 years. With general effiencies they can service this with no problems, and pay some of it back this year. There total revenue (with out addtional growth) over the next 4 years would £3.6 billion! they can service a loan of £200mill.
and we like this statement.......
The Eddie Stobart group management team is committed to building on the Group's strong fundamentals and is seeking to deliver an improved performance from a more stable footing. The business has continued to deliver excellent service to its customers and since the start of the HY19 period has won new customers such as Tilda, Metsa and Lallemand and extended contracts with Tesco, Aldi and Mayborn.
The Directors of the Company are committed to working with DBAY and the Eddie Stobart group in the interests of the shareholders of the Company and are pleased to announce the appointment to the Board of the Company of Saki Riffner.
The management and DBAY have huge inter
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