Eddie Stobart Logistics plc (ESL - AIM)

[PinkDalek]

I know that at least one other on TLF holds:

Eddie Stobart Logistics plc
("Eddie Stobart" or the "Group")
Full Year Results 2018
Strong performance, end-to-end platform developed to drive future growth.
Eddie Stobart announces its full year results for the 12 months ended 30 November 2018. ...

https://www.londonstockexchange.com/exc ... 18683.html

[Bouleversee]

Thanks, P.D. Disappointing rise in s.p. today and still well down but I see Berenberg is saying "buy" with a target of 160p so let's hope we get there before too long.

[simoan]

I've never much been interested in these kind of low margin, high capex businesses, but even then just look at the debt here. Net debt is nearly 10x net profit. You peeps are far braver than me... sometimes companies look cheap for good reason.

All the best, Si

[PinkDalek]

You peeps are far braver than me... sometimes companies look cheap for good reason.

All fair points. In retrospect, they would appear to have been expensive when I bought them!

[Bouleversee]

According to Radio 4 news, dealings in this company have been suspended and the CEO has departed. It would seem there is a query over their accounts whose publication has been delayed and no dealings are permitted until then.

https://www.thisismoney.co.uk/money/mar ... short.html

https://uk.style.yahoo.com/eddie-stobar ... 48152.html

"Shares in Eddie Stobart Logistics (ESL.L) have been suspended and its chief executive has stood down with immediate effect, according to the company.

The transport and logistics giant applied for its shares to be suspended as it carries out a review of its accounting, which is expected to reveal lower earnings for the first half of 2019.

The company said current chief executive Alex Laffey was standing down, with its current head of contract logistics Sebastien Desreumaux to replace him."

Moderator Message:
Moved here from Company Share News (LSE Main Market). - Chris

[PinkDalek]

The relevant announcements may be found below:

Half Year Trading Update 09 July 2019
https://www.investegate.co.uk/eddie-sto ... 00088669E/

Where the Prior Year Adjustment and other matters were announced.

Directorate Change, Company Update & Suspension 23 August 2019 7:00 am
https://www.investegate.co.uk/eddie-sto ... 00040017K/

AIM Suspension - Eddie Stobart Logistics Plc 23 August 2019 7:30 am
https://www.investegate.co.uk/aim/rns/s ... 30049958J/

The second one above, as per MrC's Smallcap Sweeps for August 2019 earlier this morning viewtopic.php?p=246445#p246445

[gbjbaanb]

always seemed like it should be a good company - part southend airport, part renewable biomass business.

But the corporate governance is just way out there, little directors playing strop games with each other like children. They should split it up into 2, let the director who's overly focussed on the airport to run it, and the founder run the rest. Until such happens, its uninvestable, you never know what these goons will get up to next.

[westmoreland]

if you really must, you should only invest in the stobart's of this world with a massive margin of safety, to guard against corporate governance problems.

as for logistics, it's is a poor business to be in. high fixed costs, commoditised service, business buyers who drive prices down, and very complex to execute well. at some point, a massive logistics company gets economies of scale that give it a competitive advantage (like royal mail), but a non regulated one doesnt exist in the UK.

[Alaric]

They should split it up into 2, let the director who's overly focussed on the airport to run it, and the founder run the rest.

There are already two Stobart companies out there. As well as ESL, there's also the Stobart group on the main market (STOB).

https://www.stobartgroup.co.uk/
https://www.stobartgroup.co.uk/divisions/aviation/

That's the one that runs Southend Airport.

[gbjbaanb]

d'oh. Ignore me. Wrong Stobart, saw troubles and figured it must have been stobart group.

[PinkDalek]

if you really must, you should only invest in the stobart's of this world with a massive margin of safety, to guard against corporate governance problems.

as for logistics, it's is a poor business to be in. high fixed costs, commoditised service, business buyers who drive prices down, and very complex to execute well. at some point, a massive logistics company gets economies of scale that give it a competitive advantage (like royal mail), but a non regulated one doesnt exist in the UK.

I'm sure you are correct, as was simoan back in March earlier on this thread, but what I love about TLF is the number of posters who tell us such things on bad news.

Please don't take that the wrong way, if only I'd found such warnings on here before I foolishly (lower case f btw) invested.

[Bouleversee]

if you really must, you should only invest in the stobart's of this world with a massive margin of safety, to guard against corporate governance problems.

as for logistics, it's is a poor business to be in. high fixed costs, commoditised service, business buyers who drive prices down, and very complex to execute well. at some point, a massive logistics company gets economies of scale that give it a competitive advantage (like royal mail), but a non regulated one doesnt exist in the UK.

Yes, it does make one wonder why the great Woodford put a chunk of ESL into his Patient Capital Trust in which I am also invested, silly me. I may be forgiven for picking duds, partly because they were backed by supports experts, but I don't think he can. Now you can tell us, without the benefit of hindsight, why I shouldn't have invested in WPCT despite Woodford's previous excellent record and despite not needing income at the moment so prepared to back what I thought were supposed to be exceptional growth companies. However, if by "with a massive margin of safety" you mean a very diversified and extensive portfolio, I can confirm that that is the case and I never invest huge amounts with any one company or other vehicle so I won't starve. Fortunately, several of my other picks have done very well. Nevertheless, I find it more irritating than consoling to find that these experts are often no better than I am at picking winners or spotting fraudulent activity and accounts manipulation in the companies with which they claim to be closely in touch, which I am unable to be. I used to attend AGMs and ask awkward questions but that is no longer possible and I came to the conclusion that it was a waste of time and money anyway.

[Dod101]

if you really must, you should only invest in the stobart's of this world with a massive margin of safety, to guard against corporate governance problems.

as for logistics, it's is a poor business to be in. high fixed costs, commoditised service, business buyers who drive prices down, and very complex to execute well. at some point, a massive logistics company gets economies of scale that give it a competitive advantage (like royal mail), but a non regulated one doesnt exist in the UK.

I'm sure you are correct, as was simoan back in March earlier on this thread, but what I love about TLF is the number of posters who tell us such things on bad news.

Please don't take that the wrong way, if only I'd found such warnings on here before I foolishly (lower case f btw) invested.

But why would you have paid any attention to such warnings any more than you would to recommendations? We all must stand on our own two feet and decide for ourselves, right or wrong. I do not much like road haulage since anybody seems to be able to set up as a haulier if he j
has a HGV licence and governance was sadly a complete shambles. I do not know which company is which with Stobart and I do not care. I would not have touched either.

Sorry for those who hold.

BTW this is not a share idea. Does it fit on this Board?

Dod

[PinkDalek]

Simply because I don’t bother doing much research myself. Nor do I blame anyone but myself. That having been said, I value the contributions from others on here, two of whom have already posted on the Topic.

Yes, it is a Share Idea, long or short. The sub header for here includes ‘Discuss shares’.

What do you think it is?

[dspp]

BTW this is not a share idea. Does it fit on this Board?

Dod

Dod, etc,

The wonderful MrContrarian posts almost daily news about a lot of smallcaps here on Share Ideas. Now MrC may have ideas, or may not, but I am very happy to see his news posts daily as they cause me to engage brain (and rec him). So on the basis that news can cause an idea to form in someone, then yes this board is fine (unless there are better, specific ones). And you can short it as well as go long. Mind you it would be nice to see a few more people reccing MrC each day, hint everyone.

As to whether this is the right place for all non-specific AIM and other smallcap stuff to go, see viewtopic.php?f=21&p=246550#p246550 as Alaric has already asked that question. Opinions welcome, over there please.

My apologies re ESL not being relocated earlier by the way. I don't memorise the Main Board constituents, and I thought I was doing pretty well to recognise that ESL was not STOB and rename accordingly ! Mea culpa ........

regards, dspp

[Dod101]

I agree about Mr C and have no strong feelings about what goes on these Boards. Just thought that the news on ESL might have been better elsewhere. Thanks for the response dspp.

Dod

[Bouleversee]

I agree about Mr C and have no strong feelings about what goes on these Boards. Just thought that the news on ESL might have been better elsewhere. Thanks for the response dspp.

Dod

I did commit the cardinal sin of posting my message on the Company News Board originally, not allowed if it's an AIM share for some (unintelligible to me) reason. I thought Share Ideas was for companies which people might be interested in buying, not very likely in ESL's present circumstances, but who am I to argue with the powers that be?

[Dod101]

I agree about Mr C and have no strong feelings about what goes on these Boards. Just thought that the news on ESL might have been better elsewhere. Thanks for the response dspp.

Dod

I did commit the cardinal sin of posting my message on the Company News Board originally, not allowed if it's an AIM share for some (unintelligible to me) reason. I thought Share Ideas was for companies which people might be interested in buying, not very likely in ESL's present circumstances, but who am I to argue with the powers that be?

That was my point re this Board. AIM shares are not allowed on the Company news Board? ESL may not be much of a company but it is a Company AIM or not AIM.

Dod

[PinkDalek]

Wherever the news is reported, it won’t suit everyone.

I find it helpful if existing Topics are updated, such as occurred here. Others prefer to start afresh. Such that prior helpful contributions are lost. Such as Simoan’s.

[PinkDalek]

Any chance of getting back to the Topic?

Anyone who manages to look at Company Share news should be capable of reading the full title:

viewforum.php?f=94