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.