Eddie Stobart Logistics (ESL) only floated a year ago, but it’s not unfamiliar with life on the public market. It was spun out of Stobart Group (STOB) in April 2017. Since becoming its own entity, it has completed acquisitions of e-fulfilment specialist iForce, freight service Speedy Freight and driver services company Logistic People in an effort to broaden its capabilities. The purchase of iForce has made Eddie Stobart a key player in the e-commerce sector, increasing sales there from around £49m to £130m.
The second half of the year was particularly good for contract wins. Of the £89m-worth of new agreements signed over the period, around £50m came during the fourth quarter alone, including deals with Homebase and Cemex. This compared with the £55m accrued in total the year before. Next, the group is looking to expand into Europe by extending deals with UK customers that also operate on the continent, such as Amazon and Coca-Cola.
Analysts at Berenberg expect pre-tax profit of £50m in the year to November 2018, giving EPS of 11.7p, compared with £38m and 10.1p in FY2017.
| EDDIE STOBART LOGISTICS (ESL) | ||||
| ORD PRICE: | 126p | MARKET VALUE: | £451m | |
| TOUCH: | 124-128p | 12-MONTH HIGH: | 164p | LOW: 123p |
| DIVIDEND YIELD: | 4.6% | PE RATIO: | na | |
| NET ASSET VALUE: | 59p* | NET DEBT: | 52% | |
| Year to 30 Nov | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014** | 347 | 6.6 | na | na |
| 2015** | 496 | 6.1 | na | na |
| 2016 | 570 | 11.2 | 3.3 | na |
| 2017 | 624 | 9.9 | 1.2 | 5.8 |
| % change | +9 | -12 | -64 | - |
| Ex-div: | 10 May | |||
| Payment: | 7 Jun | |||
| *Includes $272m of intangible assets, or 76p a share **Pre-IPO figures | ||||
