A £22m profit from Eddie Stobart Logistics helped cover Stobart Group’s costs after selling off a majority share in the business, the group revealed in its results for the year to 28th February.
It reported restructuring and impairment costs of some £15m associated with the sale to DBay Advisors of 51 per cent of the Eddie Stobart Logistics business, resulting in a loss from continuing operations of some £10.2m.
The profit from ESL enabled the Stobart Group to report a profit for the year of £11.3m.
Stobart Group chief executive Andrew Tinkler said the transaction “enabled us to repay the majority of our debt, buy back a proportion of shares and focus on accelerating growth of the continuing group”.
The transaction valued the business at £280.8m comprising £195.6m in cash, £44.1m in shares and approximately £41.1m in debt and debt-like items assumed by the purchaser.
Revenue for the Transport & Distribution business was £559.7m (2013: £495.6m) and underlying profit before tax was £25.3m (2013: £25.9m).
Tinkler said: “T&D had a consistent year, with revenues from most business units in line with budget. New business was secured and, in part through funding awarded by government, we are working to deliver fuel and carbon reductions.
“With William Stobart at the helm, alongside the DBay team, the new business of Eddie Stobart Logistics Ltd is in a great position to deliver future growth.”