Logistics Development Group PLC – LDG – Final Results for year ended 30 November 2020
Logistics Development Group plc, the AIM investing company, announces its audited final results for the year ended 30 November 2020
Full Year 2020 Results Summary
● On 9 December 2019, the Company concluded a transaction with DBAY Advisors Limited (“DBAY”), in order to provide additional liquidity of £70m to the GreenWhiteStar trading businesses (“GWSA Group”)1, which together with a new leadership team with significant experience of the logistics sector, put it on a stable footing and provided a platform from which to develop.
● At the reporting date, the Company’s only holding is the investment in GWSA Group via its 49% share in Marcelos Limited. At 30 November 2020, the Company revalued its investment in Marcelos Limited to £35.8m (thus incurring a £9.2m loss) to reflect the market capitalisation of the Company at the reporting date.
· The GWSA Group trading entities have continued to deliver excellent service to their customers and, despite the uncertain environment due to COVID-19 and Brexit, the business has benefitted from its exposure to the fast-moving consumer goods and e-commerce sectors and from growing demand for warehousing capacity. GWSA Group performance has exceeded our expectations.
· On 30 March 2021 GWSA Group advised LDG of its audited consolidated results for the year ended 30 November 2020. Highlights are:
o Revenue increased by 2% to £874.3m (2019 £857.5);
o Underlying EBITDA was £145.5m (2019: £4.2m). This includes the impact of the implementation of IFRS 16 Leases, which contributed £97.7m to EBITDA. Excluding the impact of IFRS 16, EBITDA increased to £47.8m (2019 £4.2); and
o Net Debt (excluding the impact of IFRS 16) reduced by £77.2m to £144.5m.
● The Company’s underlying EBIT2 in the period was a loss of £11.3m (2019: loss of £5.8m) before exceptional income of £3.4m (2019: exceptional costs of £128.7m) and statutory loss before tax was £7.9m (2019: loss of £134.5m).
● On 9 December 2020 the Board announced that it had raised £9m via a Placing and Subscription (ahead of an original £6m target) to enable conversion to an investing company on AIM which was approved by shareholders. In addition, an Open Offer to the shareholders raised a further £7m and was 62.5% oversubscribed. The combined fundraising raised a total of £14.5m (net of expenses).
● At the same time as the Company’s conversion to an investing company, the Company entered into an investment management agreement with DBAY, with an investment strategy focused on growth opportunities in the logistics sector and on 9 February 2021 the Company confirmed it had changed its name to Logistics Development Group plc with a new TIDM of “LDG.”
1 For the purposes of these results the “GWSA Group” means GreenWhiteStar Acquisitions Limited and its subsidiaries at 30 November 2020, which were subsidiaries of the Company prior to the transaction with DBAY in December 2019, and “FY20” means the twelve months ending 30 November 2020.
2 Underlying EBIT is an alternative performance measure (see Note 3) and is defined as profit/loss before interest and tax adding back exceptional items