Eddie Stobart Logistics – 158.5p

12 July 2017 – trading update

The logistics specialist has confirmed that trading for the six months ended 31 May 2017 was in line with expectations.  Sales grew by 13% to approximately £287m.  EBIT margins modestly improved year on year.  The second half of the financial year is said to have commenced well despite challenges.  The second half tends to be a stronger period for sales and margins as it includes the peak trading periods for customers in the retail, consumer and e-commerce sectors.  The second half will also benefit from a full six months’ contribution from the iForce business.  In line with its acquisition strategy, Eddie Stobart has acquired a 50% interest in Puro Ventures Limited, trading as Speedy Freight, a provider of nationwide B2B express freight services.  Interim results are due out on the last day of August and we continue to rate the shares as a BUY.

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