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Eddie Stobart cuts earnings outlook; says DBay to acquire 51% stake in Greenwhitestar business

By BFN News | 08:23 AM | Friday 15 November, 2019


Eddie Stobart Logistics cut its growth outlook following a number of adjustments made to half-yearly results, as auditors continued to review its books. The logistics company also said that DBay would not be making an offer for the entire company, but rather acquire a 51% stake in its Greenwhitestar Acquisitions business. The impact of adjustments now meant that first-half operating earnings would represent a loss of not less than £12m, and full-year earnings no more than £2m, the company said. But losses could be higher as an ongoing review by auditors 'may give rise to material further adjustments,' it added. The guidance was below a previous forecast of earnings before interest and tax in the range of £10m to £11m. Net debt for the full year was expected to be about £200m, which the company warned was unsustainable. To improve liquidity, it had entered into an agreement to sell a 51% stake in Greenwhitestar Acquisitions to a fund managed by DBAY Advisors. Under the agreement, the fund would indirectly acquire a 51% stake in Greenwhitestar and inject about £55m of new financing into the group's operations. The proposed transaction would be put to a shareholder vote at a meeting on or around 2 December. 'The proposed transaction announced today provides Eddie Stobart with the opportunity to move forward and look to deliver sustainable growth and profitability from a stable footing.' said chief executive Sebastien Desreumaux. Story provided by StockMarketWire.com

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