1 Sep 2017 16:09
Edison Investment Research Limited / Key word(s): Research Update/Forecast Edison issues update on Eddie Stobart Logistics (ESL) 01-Sep-2017 / 16:05 GMT/BST London, UK, 1 September 2017 Edison issues update on Eddie Stobart Logistics (ESL) Eddie Stobart Logistics' (ESL) H1 numbers, well trailed at the trading update in July, showed high levels of growth (13% revenues and 14% EBIT) consistent with management guidance and market expectations. New contract wins, which totalled £25m in the first half, were bolstered by organic growth in key business units. The iForce acquisition is integrating well, with the post-period acquisitions of Speedy Freight (announced at the trading update) and the remaining 50% of the Logistics People (announced yesterday) set to benefit earnings. Taken together, these growth drivers helped ESL achieve a slight increase in EBIT margin from 5.8% to 5.9%, which is well above other listed logistics firms. Also, H117 witnessed the announcement of the company's maiden dividend of 1.4p. We increase our earnings and FY17 acquisition charge to reflect post-balance sheet events and nudge up our fair value to 203p. The net effect of increased underlying earnings forecasts and increased acquisition costs results in a marginally increased fair value of 203p per share, which offers investors 27% upside to the current price. We continue to base our fair value on EVA and DCF methodologies.Click here to view the full report. All reports published by Edison are available to download free of charge from its websitewww.edisoninvestmentresearch.com About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information please contact Edison: Jamie Aitkenhead, +44 (0)20 3077 5700 Roger Johnston, +44 (0)20 3077 5722 industrials@edisongroup.com Learn more at www.edisongroup.com and connect with Edison on: LinkedIn https://www.linkedin.com/company/edison-investment-research Twitter www.twitter.com/Edison_Inv_Res YouTube www.youtube.com/edisonitv Dissemination of a UK FINANCIAL NEWS, transmitted by EQS Group.The issuer is solely responsible for the content of this announcement. |
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