Reassuring outcome and actions
Preliminary results to December 2019 were ahead of revised expectations across several metrics, not least revenue, profits, net cash and the dividend. 2020 started strongly, albeit trade was then affected by the COVID-19 related measures during March, meaning that Q1 trading was in-line with expectations.Steps have been taken to conserve cash and to reduce costs, with the final dividend payable in shares during Q3. The Group’s strategy continues to be ambitious, targeting organic growth supplemented by acquisitions and the pipeline for the latter is reported as strong.
FY20 started well, with Pall-Ex Romania continuing to deliver 20% volume growth and the Freight Forwarding division performing strongly in the CEE region. But activity slowed across most areas during March as the COVID-19 related restrictions took effect. More recently, the Far Eastern and Chinese businesses began to recover towards the end of the quarter following an understandably difficult start to the year.
We continue to be encouraged by Management’s actions on costs, the resilient trading, a healthy net cash buffer and the payment of a final dividend. Indeed, the dividend highlights Management’s confidence in the medium-term outlook for the business. The shares are well supported by the Group’s net cash (18% of the market capitalisation) and its NAV of 21p per share.
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.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.