News

Eddie Stobart's year ended February 28, 2006 results "proved to be very successful", chairman Andrew Tinkler says in his report lodged at Companies House.

Turnover rose to £135.2m from £119.3m and operating profit to £5.06m from £2.83m.

Pre-tax profit was £3.46m, up from £1.45m in 2005 and net profit was significantly higher at £5.19m, up from £1.99m. The increase is due to a deferred tax asset of £2.88m of unclaimed capital allowances and is a consequence of losses made in previous  years. There is a further potential deferred tax asset of £1.12m.

Retained profit at the year-end is stated as £13.91m, up from £8.72m the year before.

Turnover by geographic market is shown as £133.85m in the UK and £1.35m in Europe.

Staff costs during the year were up sharply at £49.7m from £42.5m. The number of employees rose by 1,711, an increase of 194. There are more drivers - 1,093 against 967 more warehousing and garage staff, at 297 against 283 in 2005 and substantially more admin and support staff, at 321 against 267 last time.

Directors emoluments and benefits in kind were £229,000, down from £279,000.

Tinkler's commentary says that "two years of extremely hard and diligent work by the management team and wider employee base" has brought about the improvements.

Investment in vehicles and equipment means the fleet now has an average age of less than two years, which complies with replacement policy, he says.

He notes that  "customer confidence in the company to handle varying operations is such that the business is to launch a dedicated freight service" - the Tesco trains launched two weeks ago.

David Meir and Brian Whawell joined the board in August this year, the report notes.

Eddie Stobart is owned by WA Developments International, which also has property/retail franchises in the Ukraine (Mothercare and Next) and the Eddie Stobart promotions company, which is continuing.