Haulage company Eddie Stobart has reported strong second half results as it looks to capitalise on several new contracts and an improvement on its Spanish fresh produce offer.

The Stobart Group, which has operations covering road, rail, ports and air, recorded pre-tax profits of £12.4 million, up £1.4m on the £11.1m posted in the first half.

The results for the six months to August 31 follow several contract wins including Tesco and Nestle, as well as cost reductions in several key areas.

The launch of rail services including distribution from Valencia to the UK of temperature-controlled fresh produce has also proved successful in its fledgling stages.

Stobart has fared quite well during the recession in comparison to much of the logistics sector, as its operations are focused on food and drink, which have proved resilient.

Stobart has also boosted its air capability with the purchase of Southend airport, with the railway station at the airport offering a proposed 49-minute link to central London by 2010.

The company said its fleet of 1,600 trucks boasted one of the best utilisation levels in the industry, with the rate in the UK at 83.5 per cent.

The company’s chairman, Rodney Baker-Bates, said: "We expect that the new business wins and recently announced contracts will deliver strong growth in performance in the second half of the financial year."

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