Tuesday 24 October 2017

Stobart's Irish distribution arm paid €8m dividend

Company’s Irish arm has lost its contract with Tesco
Company’s Irish arm has lost its contract with Tesco
John Mulligan

John Mulligan

Stobart's Irish distribution business - which has lost its contract with Tesco - generated a €3.4m profit on turnover of €36.2m. The firm also paid an €8m dividend to its parent company last year.

Eddie Stobart Logistics lost its Irish distribution contract with Tesco earlier this year to DHL, which has started working on behalf of the retailer from this month. About 150 Eddie Stobart Logistics staff who are assigned to Tesco are expected to have transferred to DHL.

The latest set of published accounts for Stobart (Ireland) are for the 12 months to the end of November, 2015. The previous set of accounts was for a nine-month period in 2014. All of the turnover last year was generated in Ireland.

The business employs just two members of management, and uses a subsidiary firm - Stobart (Ireland) Driver Services - to buy driver services for its vehicles. It paid €10.2m for those services last year.

The latest set of accounts for the driver services firm show that it had about 211 employees at the end of November last year, compared to 230 in the prior financial period.

In 2014, Stobart announced a deal to sell a 51pc stake of Eddie Stobart Logistics, the holding company for its transport and distribution unit. It valued the business at £280m. The stake was sold to William Stobart and Isle of Man investment firm DouglasBay Capital.

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