Logistics Development Group (LSE:LDG) reported underlying EBIT of £14.6 million and profit before tax of £15.0 million for 2025, both lower than the previous year but supported by continued growth in portfolio value. The company said the fair value of its investment portfolio increased to £107.8 million, while estimated year-end net asset value reached 26.7p per share.
Management highlighted its conservative valuation approach compared with higher sector multiples and said portfolio companies continue to perform strongly despite broader macroeconomic uncertainty, indicating possible upside potential from future asset disposals.
Portfolio Activity and Capital Returns
During the year, LDG supported DBAY Advisors in its successful take-private acquisition of Alliance Pharma. The company also invested £15 million into WS Holdco to help develop a nationwide UK logistics platform centred around APC Overnight.
In addition, LDG completed a £21 million tender offer that repurchased and cancelled approximately 21% of its issued share capital. The board reiterated its policy of returning capital generated from future exits to shareholders and confirmed its intention to continue quarterly NAV reporting. The company said these measures, together with the appointment of Singer Capital Markets as sole broker, are designed to strengthen transparency and improve shareholder returns.
Financial Position and Market Outlook
The company’s outlook remains constrained by uneven operating performance and persistently negative cash flow, even during periods when reported earnings remain positive.
Technical indicators also suggest a weaker trading trend with subdued momentum. However, a low price-to-earnings ratio and a debt-free balance sheet provide some support by limiting financial risk exposure.
More About Logistics Development Group
Logistics Development Group is an AIM-listed investment company focused on sectors it considers “infrastructure-like,” including bakeries, consumer healthcare, and logistics businesses that are viewed as resilient to technological disruption.
Through its subsidiary Fixtaia, the group holds interests in private and delisted companies such as Finsbury Food Group, Alliance Pharma, SQLI, and WS Holdco, targeting asset-backed and cash-generative investments acquired at attractive valuations.
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