Eddie Stobart is to reduce its holdings in Speedy Freight, after its minority shareholding parent revealed that losses had widened in the six months to May.
Eddie Stobart Logistics, the AIM-quoted cash shell which holds a 49% equity interest in the trading entities of Eddie Stobart, said that for the six-months ending 31 May 2020, it made an underlying loss before tax of £16.3 million (in 2019 it made a loss of £3.9 million).
This was before exceptional items of £3.4 million. It made a statutory loss before tax of £12.9 million (2019: loss of £3.9m).
In a statement to investors it said that the Eddie Stobart Group management team was “committed to building on the business’ strong fundamentals and is on track to deliver an improved performance from a more stable footing”.
It said that the 3PL had continued to deliver strong service to its customers and since the start of the HY20 period, despite the difficult trading environment due to Covid-19 and pointed to it winning a substantial new contract with Morrisons.
Eddie Stobart also revealed it had begun to repay senior debt, was making progress in reducing warehouse space and was exiting underperforming contracts.
It also revealed it had reduced its interest in Speedy Freight, from 47.5% to 20%, to avoid future payment obligations under put and call option agreements.