- 31 August 2017
- Transport / Logistics Services
Newly floated Eddie Stobart Logistics has bought another firm – this time taking full control of The Logistics People, a Kettering based commercial driver agency.
Eddie Stobart already owned 50% of the company, TLP Holdings but paid £6 million for the other 50% last week.
Chief executive Alex Laffey said the move was “consistent with our strategy to use and develop the skills and services of the Eddie Stobart Training Academy through the provision of a range of training services and the supply of qualified drivers and warehouse operatives to customers and other logistics service providers”.
The acquisition follows Eddie Stobart’s purchase of iForce for £44.9 million in April and 50% of Speedy Freight for £4.1 million earlier this summer.
Eddie Stobert Logistics itself floated on the AIM market in April. It has since increased sales by 13% to £286.8 million in the first half (H1) to 31 May. EBIT was up 14% to £16.9 million.
Thanks in part to the acquisitions, the flotation itself and other exceptional items, the trucking giant made a loss of £6.3 million in H1 compared to a profit of £1.7 million the year before.
Laffey said: “These results reflect continuing organic growth within our existing customer base as well as over £25m of new annualised contract wins in the period (the majority benefit of which will be felt in the second half) and the full period effect of the £65m of new contract wins from 2016. Our new business pipeline remains strong with a rolling portfolio of new business opportunities being actioned, the majority of which are in the E-Commerce and MIB sectors.”?
Laffey said that to date the iForce Group had traded to expectations “and leveraging synergies and cross-selling opportunities between the two organisations has already commenced”.
The company has been refocusing its business on its new target sectors over the past 18 months, but, said Laffey, “this has led to a slight decline in our retail sector turnover during the period due to the expiry of an unprofitable contract that we did not renew in Ireland. A large proportion of that reduction was offset through growth with our other retail clients.”
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