reports
- David O'Brien
Rapid recovery in revenues and margins
Xpediator has delivered a healthy trading update, breaking several revenue records during H2 2020. Furthermore, the outlook for FY21 remains promising, reflecting recovery to more normal levels in Transport Services, a full-year impact of the Nidd acquisition, the turnaround of underperforming businesses, and new ventures. Today’s report highlights the progress management has made since the nadir in operating margins in H2 2019. Group revenues of c.£221.0m for FY20 suggests record revenues are ...
- David O'Brien
A logical deal that is EPS accretive
Xpediator has acquired Nidd Transport Ltd (“Nidd”), a freight forwarder and operator based in Ripon. With a strong network across the North of the UK plus France, Spain, Germany and Italy, Nidd fills many of the gaps in Xpediator’s European network. We expect substantial cross-selling benefits between the two customer bases. The trailing multiple paid appears very reasonable, considering the net cash and strong asset base of the acquired vehicle. In the year to April 2020, Nidd generated reven...
- David O'Brien
Back to basics is paying off
The results from Xpediator for the six months to June were extraordinarily good. Revenues declined just 2.7%, with gross and operating margins modestly ahead - and this from a company with considerable exposure to the consumer. In addition, the dividend was increased by 61% y-o-y which highlights confidence in the outlook. The Freight Forwarding business was the star performer, with the Baltic region and Bulgaria delivering extremely healthy top-line growth. Rationalisation of the cost base co...
- David O'Brien
Changes to Board, but not in strategy
Xpediator has announced several management changes. Stephen Blyth, current CEO and Founder, is to become Non-Executive Deputy Chairman, replaced in the interim period by Joint-CEOs. Encouragingly, XPD has managed to retain Stephen’s expertise, energy and perhaps most significantly, his vision. He will also Chair the new M&A group and be a member of the audit committee. While a formal process is underway to identify the new CEO, the Board has appointed two Interim Joint-CEOs in Robert Ross, c...
- David O'Brien
Positive AGM update
While there has been a degree of disruption due to COVID-19, this has been less than management expected and mostly offset at the margin level by the action taken on the cost base during Q1. Furthermore, the M&A pipeline is healthy and likely to grow further in the current climate.; and we are encouraged by the H2 bias to trading, the action taken on costs and only a modest reduction in margins. In summary, the UK (2019: 42.1% of revenues), Italy and Spain were the worst affected regions in ...
- David O'Brien
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 suppl...
- David O'Brien
Cash rich, asset light
Xpediator has issued a COVID-19 related trading update. The key messages are reassuring: the business has a strong balance sheet and is asset light, trading is in line with internal budgets and the group has begun to see activity returning from its Chinese customers following an understandably difficult January and February. We are encouraged by the comprehensive review of costs, the resilient trading to date, a healthy cash buffer, and the underlying confidence shown in still proposing a final...
- David O'Brien
Planning ahead and removing bottlenecks
Xpediator has announced the signature of a 20-year lease with AB Ports from Q1 2021 to expand its presence significantly in the Port of Southampton. The new facility will allow the business to improve profit margins on customer stock held at peak times within third-party warehousing and provide the capacity to widen its customer base further. Once the facility is both operating efficiently and at high capacity levels, the expected uplift to profitability will be marked from 2022 onwards. It wi...
Eddie Stobart Logistics - Suspension of estimates
For the purposes of the Takeover Code, Edison Investment Research is deemed to be connected with Eddie Stobart Logistics plc. Under Rule 20.1 Edison must not include any profit forecast, quantified financial benefits statement, asset valuation or estimate of other figures key to the offer, except to the extent that such forecasts, statements, valuations or estimates have been published prior to the offer period (as defined in the Takeover Code) by an offeror or the offeree company (as appropriat...
Eddie Stobart Logistics - Suspension of estimates
For the purposes of the Takeover Code, Edison Investment Research is deemed to be connected with Eddie Stobart Logistics plc. Under Rule 20.1 Edison must not include any profit forecast, quantified financial benefits statement, asset valuation or estimate of other figures key to the offer, except to the extent that such forecasts, statements, valuations or estimates have been published prior to the offer period (as defined in the Takeover Code) by an offeror or the offeree company (as appropriat...
Eddie Stobart Logistics - Suspension of estimates
For the purposes of the Takeover Code, Edison Investment Research is deemed to be connected with Eddie Stobart Logistics plc. Under Rule 20.1 Edison must not include any profit forecast, quantified financial benefits statement, asset valuation or estimate of other figures key to the offer, except to the extent that such forecasts, statements, valuations or estimates have been published prior to the offer period (as defined in the Takeover Code) by an offeror or the offeree company (as appropriat...
Eddie Stobart Logistics - Forecasts reduced, material value upside rem...
We prudently cut our FY19 and FY20 EBIT forecasts for Eddie Stobart Logistics (ESL) by 5% and 6% respectively post the H1 trading update highlighting solid revenue growth, but EBIT at the low end of management expectations and a 4% downward revision to the last reported adjusted EBIT. Despite this, our forecast FY19 EBIT margin remains at the top end of logistics peers and, even on our revised numbers, the stock is trading at a significant discount to peers, offering an attractive c 9% dividend...
1 director bought
A director at Eddie Stobart Logistics bought 20,000 shares at 99p and the significance rating of the trade was 68/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years cle...
Eddie Stobart Logistics - An attractive dividend yield with growth
Recent strategic acquisitions have transformed Eddie Stobart Logistics (ESL) into a full end-to-end logistics provider. This strategy has resulted in strong FY18 revenue (+35% y-o-y, of which +18% y-o-y organic growth) and earnings growth (EBIT +14% and EPS +15%), reflecting the strength of its pay-as-you-go model and its ability to achieve synergies. We expect ESL to focus on margin improvement and cash flow generation in FY19, and now forecast a 13% EPS CAGR in FY18–20. Following recent shar...
Eddie Stobart Logistics - Growth accelerating in H218
We believe Eddie Stobart Logistics’ (ESL) trading statement shows that the consumer and retail sector trend for companies to outsource their logistics operations to achieve savings continues to support organic growth for the company. FY18 revenues were 3% above market expectations, while EBIT was broadly in line.
Edison issues outlook on Eddie Stobart Logistics (ESL)
Edison Investment Research Limited Edison issues outlook on Eddie Stobart Logistics (ESL) 30-Oct-2018 / 12:40 GMT/BST London, UK, 30 October 2018 Edison issues outlook on Eddie Stobart Logistics (ESL) Eddie Stobart Logistics (ESL) saw a strong level of new contract wins in H118, which contributed to its 25% revenue growth, of which 10% was organic. We believe that new opportunities are arising as customers look to outsource their logistics to both save money and cope with the shift to e-commerce. ESL's e-commerce revenues rose from 5% of the total in FP14 (8M14) to 21% in H118. As well as...
Eddie Stobart Logistics - Outsourcing and e-commerce boosting growth
Eddie Stobart Logistics (ESL) saw a strong level of new contract wins in H118, which contributed to its 25% revenue growth, of which 10% was organic. We believe that new opportunities are arising as customers look to outsource their logistics to both save money and cope with the shift to e-commerce. ESL’s e-commerce revenues rose from 5% of the total in FP14 (8M14) to 21% in H118. As well as organic growth, the company is seeing a good revenue and profit contribution from acquisitions as it lo...
Eddie Stobart Logistics - Strong revenue growth boosted by contract wi...
Eddie Stobart Logistics (ESL) published its H1 results on 30 August, reporting 25% revenue growth, including 10% organic. Organic growth was boosted by a higher than average level of contract wins and a good performance from the e-commerce division. A flip side of the contract wins was that they incurred network reoptimisation costs and this was the main reason that the EBIT margin declined from 5.9% to 5.0%. Management maintained full-year guidance.
Interims show delivery on growth plans
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 (anno...
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 Laffe...
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