Profit down by 8.6% at Stobart
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EDDIE STOBART, the transport and distribution division of Stobart Group, has revealed an 8.6% drop in pre-tax profit in the first six months of its financial year, despite a 15.4% increase in turnover.
For the six months ending 31 August, Stobart Group’s transport operations reported £265.9m of turnover with £13.7m pre-tax profit, compared to turnover of £230.4m and pre-tax profit of £15m a year ago. The Carlisle-based haulier blames the profit dip on fluctuating volumes caused by retail promotions, which created issues in load planning efficiency – an issue it warned CM about in May.
It says it will look to improve margins through cost reductions, rather than “substantial growth in top line revenue”. Overall, Stobart Group posted a turnover of £281.1m, up from £243.7m a year ago, with pretax profit down slightly at £14.7m compared with £15.4m a year ago.