Segro acquires German logistics assets, plans further expansion in Europe

Segro chair David Sleaford has increased his stake in the logistics company by 200,000 shares, taking his holding to 1.2 million shares. The purchase, which cost Sleaford £200,000, comes as Segro shares have fallen by around 20% in the past year.

Sleaford’s stake increase is a vote of confidence in Segro’s long-term prospects. The company is the UK’s largest owner and operator of logistics property, with a portfolio of over 30 million square feet. Segro has a strong track record of growth, and it is well-positioned to benefit from the continued growth of e-commerce.

In the fiscal year 2022, Segro reported a pre-tax profit of £358 million, up from £288 million in the previous year. The company’s revenue also increased by 11% to £1.3 billion. Segro’s strong performance was driven by the growth of its e-commerce business, which accounted for 30% of its total revenue in the fiscal year 2022.

Segro is investing heavily in its e-commerce business. The company is building a new distribution centre in Daventry, which is due to be completed in 2024. The Daventry distribution centre will be Segro’s largest e-commerce facility, and it will have a capacity of 1 million square feet.

Segro is also expanding its operations in Europe. The company acquired a portfolio of logistics assets in Germany in 2022, and it is planning to acquire more assets in Europe in the coming years.

Sleaford’s stake increase is a sign that he is confident in Segro’s ability to continue to grow and prosper in the years to come. The company has a strong track record, a growing e-commerce business, and a plan to expand into Europe. Segro is well-positioned to benefit from the continued growth of the logistics sector.

In addition to Sleaford, other Segro directors have also increased their stakes in the company in recent months. Chief executive David Newlands has increased his stake by 50,000 shares, and finance director Stephen Puddifoot has increased his stake by 25,000 shares. The purchases by Sleaford, Newlands, and Puddifoot are a vote of confidence in Segro’s management team and its strategy.

The increased stake purchases by Segro directors come at a time when the company is facing some challenges. The logistics sector is facing rising costs, and Segro is also facing competition from new entrants to the market. However, Segro has a strong track record of overcoming challenges, and it is well-positioned to continue to grow and prosper in the years to come.