Eddie Stobart H1 results will be at lower end of management views

Logistics company Eddie Stobart warned on Tuesday that first-half earnings before interest and tax are likely to be towards the lower end of management expectations due to slower-than-expected productivity improvements in its contract logistics and warehousing business.

In a trading update for the half year to 31 May 2019, the group also pointed to the short-term adverse effect on the operational efficiency of its transport network from exiting "a problematic contract" in early March.

"However, as in previous years our volumes will be weighted substantially towards the second half of the year and the company expects to deliver full-year results in line with the board's expectations," it said.

Group revenue during the half rose 25% versus the same period last year thanks to organic growth and a full first-half contribution from The Pallet Network, which it bought last year.

On a like-for-like basis, revenues were up 8%, reflecting continuing organic growth and a number of new contract wins.

At 0805 BST, the shares were down 0.5% at 114.40p.