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Eddie Stobart Logistics CEO Alex Laffey has big ambitions to grow the business in traditional transport and new areas such as e-commerce, as he tells Steve Hobson
Alex Laffey spent 25 years with Tesco before becoming CEO of Eddie Stobart Logistics (ESL) in May 2015 as it prepared to float on the Alternative Investment Market (AIM) of the London Stock Exchange in April 2017. Just before the listing, William Stobart stood down as director and the flotation broke ESL's link with the Stobart Group, which is listed on the main Stock Exchange. It also gave Isle of Man-based private equity firm Douglas Bay (DBAY) an exit route from the business.
"In 2014 Stobart Group sold down control of ESL to DBAY and I knew when I joined the business its horizon was three to five years," says Laffey. "We set about putting the business in the best possible financial shape and being listed on AIM achieves that goal."
Stobart Group, now an infrastructure, energy and aviation services business, had owned almost half of ESL. It realised £120m from the flotation while retaining 12.5% of ESL and ownership of two of its sites.
Growth ambitions
The flotation raised £130m for ESL, which, according to the prospectus, will be "used primarily to reduce gearing, partially fund the acquisition of iForce Group and provide ESL with a financial platform to support its growth ambitions".
Laffey declines to put a number on those growth ambitions but confirms he is looking to maintain double-digit annual increases in revenue. "What we have is working in die market place but if we don't innovate, don't deliver the service and aren't competitive, we won't grow," he says.
"It is up to me to describe the value we can bring to organisations - and then deliver it"
Since the flotation, the ESL share price has had a bumpy ride, and at the time of our interview in early December 2017 was 5p off the 160p flotation price at 155p.
Laffey is a down-to-earth Geordie who would rather spend his time running the company than in the City. But he is keenly aware of the importance of the share price, and our meeting is in a smart London restaurant ahead of a day of...