Haulage company Eddie Stobart has announced it has returned to profitability after reporting profits of £16.6m for the full-year period ending 31 May, up from losses of £6.3m the previous year.
Despite the challenges of Covid-19, Stobart said revenues were broadly in line with last year at £416.5m, a 1.1% decline from last May’s results of £421.1m. Eddie Stobart claimed this reflected its “coherent business model.”
The firm attributes the turnaround in profitability to a “significant reduction” in costs through the internal recruitment of drivers and warehousing staff and the streamlining of duplicated roles within the organisation.
In addition, it said it benefitted from new business and exiting away from loss making contracts as well as the increased demand of high quality logistics and transport services during the pandemic.
The business runs the largest FTL network in the UK, with over 2,200 trucks and 3,500 trailers, and operates six trains per day. It also provides warehousing services from over 20 sites with over 6 million sq.ft. of storage space which is used by popular brands such as Nike and Amazon.
William Stobart, executive chairman of GreenWhitestar Acquisitions, which owns Eddie Stobart, 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.”