GreenWhiteStar Acquisitions, which holds a 49% stake in Eddie Stobart Logistics, said the 3PL had returned to profitability despite a dip in turnover and widening of net debt.
For the six months ending 31 May 2020 turnover was down 1.1% year-on-year from £421.1 million to £416.5 million.
GreenWhiteStar said that profitability at Eddie Stobart had increased from existing and new customers, and it had replaced revenue from exiting loss-making contracts.
Underlying EBITDA for the period stood at £16.6 million (compared to a loss of £6.3 million in the same period in 2019) while underlying EBIT stood at £10.6 million (compared to a loss of £11.6 million in H1 2019).
Net debt stood at £242.7 million as of 31 May 2020, compared to £236.9 million at the time of the DBAY transaction. GreenWhiteStar said this reflected non-recurring re-organisation costs and investments.
William Stobart, Executive Chairman of GWSA, said: “These results show we have put past challenges firmly behind us. The past six months have shown the strength of our differentiated business model which has allowed us to grow existing customer relationships, win new business, return the GWSA Group to profitability and overcome challenges presented by Covid-19.
“Looking ahead, we are confident that our renewed focus on our historic core capabilities as transport and logistics services provider for the FMCG and grocery sectors, and as a leading player in e-commerce logistics and fulfilment, will allow us to drive profitable growth going forward.”
Across the divisions of Eddie Stobart Logistics, GreenWhiteStar said that Eddie Stobart had increased warehouse utilisation and reduced property rental liabilities and highlighted new business wins in the UK with Wm Morrison, Hillebrand, McBride and in its EU business with Nike and Amazon
In iForce GreenWhiteStar said it had centralised the company’s activities into Eddie Stobart Logistics’ 850,000 sq ft national fulfilment centre in Corby, while it said The Pallet Network had recorded record-breaking pallet volumes and extended its central cross-dock hub by 75,000 sq.ft.