Eddie Stobart revenues beat market expectations thanks to new purchases
Eddie Stobart beat market expectations to grow revenues 35 per cent to £843m for the 12 months to the end of November, it revealed today.
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The logistics giant beat 2017’s haul of £624m as its top line was fuelled by newly acquired subsidiaries iForce, Speedy freight and The Pallet Network (TPN).
Outside of those purchases, revenue grew 18 per cent, with Stobart counting £162m from new contracts over the year.
Those include Knauf and PepsiCo, which in the first half of the year were expected to contribute to £158m in extra annual revenue.
The wins come as logistic firms continue to benefit from the rise of online retail creating additional complexity in supply chains.
However, net debt grew from £109.5m in 2017 to £154m as Stobart invested in its transport operations, warehousing network and tech to underpin future growth.
Stobart also accumulated debt with its £53m June purchase of last-mile delivery specialist TPN, which it acquired to help build a more resilient network.
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The company said that margins will improve in 2019 after the business incurred costs in the first half of last year to implement its latest customer contracts.