Eddie Stobart Logistics plc (ESL - AIM)

[PinkDalek]

Eddie Stobart Logistics plc

Eddie Stobart statement regarding Coronavirus (COVID-19)

Released 07:00 24-Mar-2020 RNS Number : 2957H
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/ESL/14474246.html

Eddie Stobart Logistics plc (the "Company"), the AIM-quoted cash shell, notes the following statement by the trading entities of Eddie Stobart ... The Company notes that, at this stage, no conclusion can be drawn as to the potential impact of the exceptional volumes highlighted above on the profits or losses attributable to the Company for the year ended 30 November 2020.

The company being Eddie Stobart Logistics plc, the AIM-quoted cash shell as per the extract above.

At least there is life in the old dog, amongst the overall Red Sea (aka Sea of Red).

[Bouleversee]

Eddie Stobart Logistics plc

Eddie Stobart statement regarding Coronavirus (COVID-19)

Released 07:00 24-Mar-2020 RNS Number : 2957H
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/ESL/14474246.html

Eddie Stobart Logistics plc (the "Company"), the AIM-quoted cash shell, notes the following statement by the trading entities of Eddie Stobart ... The Company notes that, at this stage, no conclusion can be drawn as to the potential impact of the exceptional volumes highlighted above on the profits or losses attributable to the Company for the year ended 30 November 2020.

The company being Eddie Stobart Logistics plc, the AIM-quoted cash shell as per the extract above.

At least there is life in the old dog, amongst the overall Red Sea (aka Sea of Red).

You couldn't make it up, could you? One of the few companies to benefit (possibly) from this catastrophe. There is no justice in this world!

[PinkDalek]

I've little time for TLF for the moment, in that what I seem to read is mostly repetitive*** and dull (even on the more frivolous boards) but I thought I should include this.

You couldn't make it up, could you? ...

Late on Thursday afternoon, the day before a rearranged Friday Bank Holiday, they released this Company Update & Notice of Annual General Meeting:

RNS Number : 3278M Eddie Stobart Logistics PLC 07 May 2020 Released 16:24
https://www.londonstockexchange.com/exc ... 32843.html

As always best to read the entirety but despite the AIM has agreed with the Company an extension to this timeline to 9 December 2020, the part below fills me with little hope whatsoever for the future:

While the Company would be required to raise a minimum of £6 million in cash via an equity fundraising to become an investing company, the Directors believe that substantially more will need to be raised for the Company to support an ongoing investing policy. If funds cannot be raised, it is likely that the Company's shares will be cancelled from trading on AIM, and that the Company will either continue as a private company or distribute its indirect interest in the Eddie Stobart trading entities to shareholders.

I should have taken your earlier comments to heart when you said what a pity you didn't sell the whole lot while you were about it.


*** You'll know where, in particular, I'm talking about.

[Pipsmum]

You would think that this company should have been sailing through this covid outbreak with flying colours. Just when things really need moving from A to B. There really ought to be much good long life in this trusty dog. Our journeys as a child were never complete without spotting a Stobart lorry.

[PinkDalek]

You would think that this company should have been sailing through this covid outbreak with flying colours. Just when things really need moving from A to B. There really ought to be much good long life in this trusty dog. Our journeys as a child were never complete without spotting a Stobart lorry.

Yes but the company you are talking about is not the cash shell Eddie Stobart Logistics plc (ESL - AIM).

[Bouleversee]

"UK regulator opens probe into PwC and KPMG audits of Eddie Stobart"

They are referring to ESL, of course. If you google that heading, you should be able to get it. I did, anyway. Otherwise, I am sure you will find another article saying the same thing as the FT article.

[PinkDalek]

Are you selling or hanging on?

Merely to update, sold 60% of my entire increased holding 60 minutes back as I got cold feet at around 10p. ...

The above from February 2020.

I finally bit the bullet and have sold the remaining holding today. As before, a poor investment and one that has taught me a great deal! Thanks to all for the mainly polite expressions of exasperation that anyone would want to buy, let alone hold. At least my trade back in February turned out okay, recouping a reasonable part of my overall loss on this gamble.

Good luck to those that continue to hold and even to those who are buying today.

Boulee is aware of this fairly recent RNS but I'll post it in passing:

RNS Number : 3675G
Eddie Stobart Logistics PLC
24 November 2020
https://www.londonstockexchange.com/news-article/ESL/response-to-share-price-movement/14767585

Extract only:

The Board remains committed to converting to an investing company, which will require a shareholder vote and completion of an equity fundraising of a minimum of £6 million in cash. Should the proposed conversion not be announced before 9 December 2020, it is expected that the Company's ordinary shares will be suspended from trading on AIM from that date. It is expected that the equity fundraising will be structured as a placing, subscription and open offer, and that new ordinary shares will be issued at a discount to recent share price levels.

There can be no certainty at this stage that either the conversion to an investing company or the placing and open offer will complete successfully, or as to the final terms in each instance. Updates will be provided by the Company in due course as appropriate.

[Bouleversee]

It's taught me a great deal, too, PD. Unfortunately, since I don't trade, I have no quick profit, only a large % loss. I'll stick to the likes of SMT in future.

[PinkDalek]

It's taught me a great deal, too, PD. Unfortunately, since I don't trade, I have no quick profit, only a large % loss.

Are you saying you continue to hold, despite saying to me and what a pity you didn't sell the whole lot while you were about it.

I know you said you've mentally written off your investment (as had I) but is there nothing material left that you can recoup? I know what is gone, is gone, and it seems pointless to hold if you think it will lose AIM status and thus cause difficulties for your Executors on what you are suggesting could be a very small unlisted holding.

I also appreciate you are busy but a little tidying up may not go amiss.

[Bouleversee]

It's taught me a great deal, too, PD. Unfortunately, since I don't trade, I have no quick profit, only a large % loss.

Are you saying you continue to hold, despite saying to me and what a pity you didn't sell the whole lot while you were about it.

I know you said you've mentally written off your investment (as had I) but is there nothing material left that you can recoup? I know what is gone, is gone, and it seems pointless to hold if you think it will lose AIM status and thus cause difficulties for your Executors on what you are suggesting could be a very small unlisted holding.

I also appreciate you are busy but a little tidying up may not go amiss.

Yessir!

Unfortunately, I have a thousand and one things that need tidying up, including my house and large garden, and it is a question of priorities and finding the time to cook and eat, which I haven't since breakfast. ESL is indeed a very small part of my total p/fs and while I never like to lose a large part or all of any investment, which has happened a few times since I started looking at TLF and its predecessor and I now have quite a few holdings worth precious little, and also since I had rather more money/holdings than previously to keep an eye on, I have to console myself with the fact that I have also had some pretty good successes and there is little danger of my starving.

As regards ESL the price now is no lower than it was after their vertical drop at end. Feb/beg. Mar. so I haven't lost anything since then. I bought 2500 shares @ 142.10p in April 2018. If I sold now I would get around £230 minus charges, creating a loss of over £3,300. I had rather pushed it to the back of my mind, thinking it might go up a bit after reading in July that the Chairman, despite reporting a large loss for previous year, was optimistic for the future, then in August that Morrisons had given the delivery arm a large contract for moving their goods around. The other reason is that I hadn't a clue what to do about it. If they come off AIM, does that mean they will be a private unlisted company and there will be no exchange through which to sell the shares? I see what you mean about the Exors. Perhaps I should just bite the bullet and sell immediately for that tiddly sum. I have been trying to contact someone in the company or their listed advisers but nobody answers their phones these days.

Does anyone else on here have any views/advice? I have several other similar situations where decisions are required imminently and it is all a time-consuming bore. I do realise that the structure of the company has changed and is now very complex and difficult to remember. I must print out the details and try to memorise when I have got my head round it.

[PinkDalek]

... If they come off AIM, does that mean they will be a private unlisted company and there will be no exchange through which to sell the shares? ...

No idea if there'd be an exchange or not (others have written about being unable to get rid of other defunct holdings in the past, despite some type of exchange being putatively available - no willing buyer - no sale. I recall a post at Taxes on the subject but can't recall the detail this minute) but, yes, the tidying up aspect whilst it is still relatively simple to sell, whilst trading is definitely available on AIM, is what I was suggesting you may wish to consider.

... then in August that Morrisons had given the delivery arm a large contract for moving their goods around.

Eddie Stobart Logistics plc are not getting those contracts. They belong to its 49% indirectly owned associate.

https://www.londonstockexchange.com/news-article/ESL/trading-update-of-associate-company/14716156 is worth a read from 12 October 2020, as well as the ESL interims issued 28 September 2020 https://www.londonstockexchange.com/news-article/ESL/interim-results-for-six-months-ended-31-may-2020/14699772.

... creating a loss of over £3,300.

...and if the share price doubles, the loss will be some £3,000 or so. You and I both know this isn't merely a paper loss; it is real and the original cost is, effectively, a sunk cost.

My main point is the potential future administrative burden of holding shares in a company, if no longer admitted to AIM. That is why I sold today, not wishing to wait and see what happens next Wednesday (9 December) or whenever. My gambling instinct tempted me to hang on until after then but common sense seems to have taken over, for a short moment.

Good luck with whatever you decide to do. I've yet to have finish my breakfast!

[Bouleversee]

PinkDalek said:

"Eddie Stobart Logistics plc are not getting those contracts. They belong to its 49% indirectly owned associate.

https://www.londonstockexchange.com/new ... y/14716156 is worth a read from 12 October 2020, as well as the ESL interims issued 28 September 2020 https://www.londonstockexchange.com/new ... 0/14699772.

Very interesting. I didn't see that when I went on to the website of Eddie Stobart Logistics PLC today. But I did see:
https://eddiestobart.com/plc-info/eddie ... e-company/, which was similar to your other link.
Note that this was dated l2 Oct. 2020. I assumed from that that ESL still owned 49% of GWSA including the trading entities, which was again profitable, with an anticipated profit in excess of £33m for year to 30.11.20. From your link, however, it would seem that this had been subsumed into Marcelos Ltd. in Dec. 2019 and that ESL owns 49& of that entity and that ESL has increased its loss up to 31.5.20. Has there been a t.s. up to Nov. 30 which might present a rather different picture in view of all the delivery work completed since then which must be reflected to a degree in ESL's figures?. I don't begin to understand the devaluation if their investment in Marcelos but I suspect jiggery pokery.

ESL said that trading could be suspended if conversion into an investment company was not announced before Dec. 9 which will soon be here. They are a bit tardy in telling us what is likely to happen. An email from the Co. Secy. late this afternoon said:" As mentioned in the last announcement we made, you will receive shortly a detailed document explaining the next steps in the evolution to an investing company and our strategic objectives, which I hope you will find helpful." I gather this will actually go to the nominees so that will take another few days. I don't know what the last announcement said, do you? Nor have I had time to check what happened at the AGM.

All in all, I should think you are right and I should not waste any more time over this but sell on Monday, by which time I daresay the s.p. will have gone down again, knowing my luck. I think the only people who will make any money over this will be the insiders. Now can I go and eat for the first time since breakfast?

[PinkDalek]

... An email from the Co. Secy. late this afternoon said:" As mentioned in the last announcement we made, you will receive shortly a detailed document explaining the next steps in the evolution to an investing company and our strategic objectives, which I hope you will find helpful." I gather this will actually go to the nominees so that will take another few days. I don't know what the last announcement said, do you? ...

Well done in obtaining a reply but I'm slightly surprised you are being told there will be a detailed document in advance of an RNS!

The latest RNS issued by ESL was the one I referenced yesterday, when resurrecting this thread, and is here:

https://www.londonstockexchange.com/news-article/ESL/response-to-share-price-movement/14767585

[Bouleversee]

PD - I think he was referring to the RNS which, contrary to what might have been expected from the reference to "before 9 Dec." in your linked release, was not issued till 7 a.m. today. I didn't in the event get any message from the company about this and having been given the impression that if nothing had been agreed and announced before 9 Dec. dealing would be suspended on the 9th, I did my tidying up yesterday and sold at 7.7p crystallising a large loss.

I see the s.p. has been up to 10p today, now hovering above 9p, and that the open offer would have entitled me to 925 new shares @ 5p = £46.25 which would have avoided dilution but makes little material difference, and the chance to acquire extra shares at this price without any guarantee of getting them. So I could have achieved a bit more if I had waited till today to sell (or not had the lengthy phone call which came just as I was about to sell at a better price earlier yesterday) and if I had kept my shares and taken up my entitlement I might have made a little more but I doubt very much that I would have made back my large loss in the foreseeable future if ever and since I know nothing about the investment skills of the management but have little confidence and trust in them, I would not have been tempted to apply for a large number of additional new shares. AIUI these people floated off the company or its subsidiary at a very high price, let its value drop under their management and are now getting it back for a very low price while paying themselves high salaries and generous LTIPS. I think I have a better chance of making back my loss elsewhere; indeed I already have, and much more, just with the increase in value of my SMT shares bought relatively recently and I am happy to let their management get on with it, avoiding the need to pore over lengthy and ill-written documents. The other holdings I have topped up since Covid arrived are also doing quite well but I am not looking to put more money into the market from now on.

https://uk.advfn.com/stock-market/londo ... o/83858943

[PinkDalek]

Belatedly, I've been in meetings again today. That being one of the reasons I sold last Friday but I saw the RNS first thing this morning.

PD - I think he was referring to the RNS which, contrary to what might have been expected from the reference to "before 9 Dec." in your linked release, was not issued till 7 a.m. today. ...

Yes, I'm sure he was but my point was being surprised they'd tell a shareholder (nominee or otherwise) via email that an RNS would be on the way, before such an RNS had been released. Yes, I did appreciate one would be required to retain the AIM quote but not that it would definitely be forthcoming.

For the future and from the RNS The Company intends to change its name to "Logistics Development Group plc" following Admission by resolution of the Board. I haven't read the remainder.

[Bouleversee]

An email from a secretary at ESL hit my inbox yesterday afternoon while I was gathering another carload of acorns, telling me " the admission document has been posted out so should be with you in the next day or two." I doubt I shall receive anything about it from iWeb though since, according to the document, the record date is 7 December, I presume I could still apply for my entitlement plus additional shares even though I have now sold my original holding, which seems rather odd. I don't think I'll bother. I thought such documents were usually sent out before the record date.