Edison Investment Research - Logistics Development Group (LDG) Strong H1 reinforces story

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Edison Investment Research

Strong H1 reinforces story

ESL’s pre-close update confirmed the company traded in-line with expectations in the first half and continues to do so going into the second half. H117 sales grew 13% to £287m with a modest expansion in operating margins despite a challenging economic and political backdrop. Integration of the iForce acquisition continues and management highlighted the potential for cost and revenue synergies. In addition, ESL acquired 50% of Speedy Freight, a B2B express freight service provider. CEO Alex Laffey said he remains confident of meeting market expectations for the full year and once again highlighted E-commerce, Manufacturing, Industrial and Bulk as key end-markets for the group.

13/07/2017 3 EN

Underlying

Logistics Development Group

Eddie Stobart is a logistics and supply chain organization in the UK. From its headquarters in Warrington, operating 2,200 vehicles, 3,800 trailers and 24 distribution centres throughout the UK and Europe. Co. operates its business across the following core sectors: E-Commerce - covering online retailers and omni-channel retailers; Manufacturing, Industrial & Bulk - includes movement of raw materials and components used in manufacturing processes; Consumer includes the movement of manufactured products; and Retail covers the retail supply chain, operating from either a retailer's supplier or a retailer's own distribution centers, from where goods are transported to a retailer's outlets.

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GB00BD8QVC95 London Stock Exchange United Kingdom

Provider

Edison Investment Research

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, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Strong H1 reinforces story

Rapid recovery in revenues and margins

A logical deal that is EPS accretive

Back to basics is paying off

Basilea Pharmaceutica - Cresemba milestone payments continue to roll in

AAC Clyde Space - Solid start to the year with further order growth

Tinexta - Typical seasonality in Q124

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