Eddie Stobart Logistics saw sales race ahead last year as the road haulier was improved by new contract wins.

The logistics firm reported a 35 per cent rise in full-year revenue to £843 million in the 12 months to November 30, which is ahead of market expectations.

The boost was driven by £162 million of new contracts across all its sectors, according to the company. 

Sales were up 18 per cent, excluding contributions from its subsidiaries iForce, Speedy Freight and The Pallet Network (TPN). Underlying earnings for the period were broadly in line with market expectations.  

At period end the net debt was around £154 million, a rise from £109.5 million, representing working capital investment.

The company said the increased investment is needed to support the ‘significant levels of sales increase’ and the added debt associated with the acquisition of TPN.

Profit margins improved in the second half of the year, following costs incurred in the first half in implementing major new customer contracts, Eddie Stobart Logistics explained. Margins are expected to improve further this year.

In 2018 the firm said bosses are reviewing whether or not to keep the renowned British brand.

Eddie Stobart Logistics, which was spun out of Stobart Group in 2014, has to pay royalties to its former owner for using the name the current licensing deal ends in 2020.

The company was founded in the 1940s and provides supply chain transport and logistics across Europe.

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