LONDON (ShareCast) - (Sharecast News) - Eddie Stobart Logistics said it was making progress towards becoming an investment company as the company's annual operating loss tripled.
The AIM-traded company, which owns 49% of Eddie Stobart Group, reported a £27.8m operating loss for the year to the end of November 2019 from a £9m equivalent loss a year earlier.

Revenue increased to £857.5m from £781.5m as the company benefited from a full year's contribution from TPN, which it bought in 2018. Cost of sales rose to £712.6m from £643m and administrative expenses before exceptional items increased to £158.3m from £138.5m.

Eddie Stobart was rescued in December by private equity group DBAY, which injected £55m into the company in exchange for a 51% stake, leaving Eddie Stobart Logistics as a cash shell with 49%.

Eddie Stobart Logistics Chairman Adrian Collins said: "The board believes the best way forward for Eddie Stobart Logistics plc is to become an AIM investment company focussing on investment in the logistics sector. In our view this sector will benefit from changing market dynamics and an increasing demand for logistics services and the companies that can meet the developing needs of businesses and consumers will prosper. I look forward to working with DBAY and the board to deliver on the strategy and create value for our shareholders.

"We had intended to complete this transition within six months of completion of the DBAY transaction. However, this timeline has been extended as a result of the Covid-19 pandemic. Our intention now is to move forward with this transition before the end of the financial year, subject to shareholder approval."

The company's shares rose 6.2% to 7.33p at 13:48 BST.

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