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Eddie Stobart's growing pains

Eddie Stobart's growing pains

Expansion comes at a cost – at least initially. Since it went public in 2017,Eddie Stobart Logistics (ESL) has been broadening its capabilities and haulage capacity through a series of acquisitions, culminating in a £52.8m deal to bring The Pallet Network within the fold. The West Midlands-based firm, as its name suggests, has given the group a presence in the pallet distribution market across the UK and Ireland, while enabling it to respond to increased customer demand for next-day, less-than-a-truckload freight deliveries. The deal has enhanced the group’s commercial proposition, its ability to provide integrated logistics services for its clients, in addition to building scale, but the associated growing pains are evident in the balance sheet, net cash-flows and at the margins.

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