Section Items

Clarification
The comments on this page are some of the thoughts that I had when considering this company and not a recommendation to take an action or to refrain from taking an action.

As you know we have no information about your circumstances, understanding of your investment goals or the level of risk that is acceptable to you. So it would be completely unreasonable to read these commentaries as recommendations.
Is This Just Pump And Dump?
I may or may not own the shares which have commentaries on this site.

Commentaries tend to be created when I look at a share and decide if it is one that I want to buy either now or when I next have an unallocated pot.
Financials
As companies often report numbers in slightly different ways there are a number of entries to cover this and as these are rough notes there will usually be empty items.

The debt columns are shown as positive values if there is any debt, all other negative values are shown within parenthesis and without a sign.

Commentary On Eddie Stobart Logistics PLC

Title: Eddie Stobart Logistics – Good New As In No Bad News
Company: ESL - Eddie Stobart Logistics PLC
Share Price Then: 5.75p
Author: Ian Smith
Date: Sun 10 May 2020
Comments: ESL released an RNS announcement on the Thursday just before a bank holiday Friday, looking at the share price this announcement seems to have been at 16:24.

This announced the date of the AGM and stating something that would have been known but possibly not considered.

ESL no longer does anything, since the refinance deal it exists to hold shares (49%) in the companies that do the actual trucking.
This means that it is ineligible for it AIM listing unless it becomes an investment business which would require raising at least £6m which is a bit less that a third of its market cap at 5.75p per share or actually become a trading company.

The trading company route seems unlikely and The Board is continuing to explore opportunities to raise additional funds to permit the Company to become an 'investing company' and remain quoted on AIM.

The problem is that it can’t become an investment company, just hold its existing shares and do nothing else, it would have to be a real investment business which would mean that it would need to raise significantly more than £6m.

If funds cannot be raised, it is likely that the Company's shares will be cancelled from trading on AIM, and that the Company will either continue as a private company or distribute its indirect interest in the
Eddie Stobart trading entities to shareholders.


All of this needed to be done by the 9 June 2020, The global COVID-19 pandemic has impacted public fundraising activities and noting the Company's retained interest in GWSA, AIM has agreed with the Company an extension to this timeline to 9 December 2020.

On the 3 April 2020 Adrian Collins was appointed as chairman but if you look at https://eddiestobart.com/plc-info/directorate-update-2/ you will see that he has been a director of a number of failed business. Whether this is a good sign, has experience with businesses in difficulty or a bad sign is up to you.

On one hand Stobbart has talked about exceptional volumes on the other there has been a lot of talk of haulage companies only partially utilising their capacity. Yes we are delivering a lot between 5am and 9am and are then idle for much of the rest of the day.

This news doesn’t alter the fact that the haulage business was a good buy for DBAY, it was cheap and it loaded the business up with a loan. So ESL shareholders could easily be wiped out whilst the business prospers.

To me it looks like a trading share with a lot of potential for losses or gains over the next few weeks but a terribly risky long term hold.
Financials:
ItemCurrent PeriodPrevious Period
Year20192018
Period6 Months6 Months
Revenue£421m£334m
Earnings
Adjusted Earnings
EBITDA
Adjusted EBITDA(£12m)£1m
Statutory Profit
Adjusted Profit
Total Debt
Net Debt£158m£115m
Read Count: 104