Eddie Stobart expands after successful year
By: David Howells
19 January 2012
Logistics giant Eddie Stobart has announced that its major restructure - focusing more on chilled warehouse operations - is proving to be successful.
Eddie Stobart has undergone a large-scale restructure in the past financial year, with initial results positive. As some of the biggest changes were implemented in the ambient transport operations, the firm has claimed it will focus more on these in the next year, menmedia.co.uk reports.
The growth comes alongside a growing of the firm's property portfolio, with plans afoot to acquire 18 properties in a deal worth over £12 million. This will comprise a £5.15 million payment for the properties, as well as £7.2 million worth of new Stobart shares.
This expansion is aimed at furthering Stobart's position as a leader in the industry; with the growth potentially leading to an influx of workers as the brand creates logistics jobs for its new acquisitions.
Speaking to logisticsmanager.com about the firm's future plans, a non-executive chairman of Stobart, Rodney Baker-Bates, explained: "This portfolio will both diversify and strengthen our existing property portfolio.
"We have the management capability within the group to improve both the income and capital performance. It will provide positive cash flow, gives a return above our current cost of capital, and offers substantial capital upside potential."
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