26th Feb 2020 09:59
(Alliance News) - Eddie Stobart Logistics PLC's belated half-year results on Wednesday showed double-digit revenue growth, but its loss widened on biting impairments.
The company shares also returned to trading on Wednesday, after being suspended in August. The stock was trading at 6.25 pence each, a 91% crash from its previous close of 71.00p.
In the six months to May 31, 2019, revenue rose 26% to GBP421.3 million from GBP334.5 million. Its pretax loss widened sharply to GBP199.8 million from GBP15.1 million.
The company booked GBP169.2 million in impairment costs, compared to no impairment charges in the year prior.
Eddie Stobart decided against proposing an interim dividend, following the 1.54 pence payout the year prior.
In December, the company confirmed a cash injection from major shareholder DBAY Advisors Ltd. In return, DBAY got a 51% stake on Greenwhitestar Acquisitions Ltd, the entity which holds all of the logistics and haulage firm's assets.
Eddie Stobart said on Wednesday: "This transaction provided GBP70 million of additional liquidity, putting the Eddie Stobart group on a stable footing and providing a platform from which to develop."
The company added it has appointed Saki Riffner to its board as a non-executive director. Riffner is also a director at DBAY.
Another shareholder, Stobart Group Ltd, which holds a 12% stake, on Wednesday said it believes "will play an important role in the long-term future of Eddie Stobart Logistics".
Stobart Group shares were down 3.3% at 84.27p each in London on Wednesday morning.
By Eric Cunha; [email protected]
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