Stobart Group announces robust performance despite tough market

Stobart Group (Stobart), a leading provider of multi-modal transport logistics, Estates, Air and Biomass, has announced its interim results for the six months ended August 31, 2011.

For the six month period ended August 31, 2011, revenue was £281.1m, an increase of 15.3% compared to £243.7m in the same period of 2010. Stobart Group also announced its operating profit had increased by 1.6% from £18.8m in the six month period ended August 31, 2010 to £19.1m in 2011. The company’s underlying EBITDA was up 2.6% to £27.6m from £26.9m in 2010.

Andrew Tinkler, Chief Executive Officer, said: "We have delivered a robust performance across the Group despite a tough market for transport. Our new strategy is being implemented and we are well positioned to deliver strong results in the medium term. The weak economy, however, has held back our rate of profit growth particularly in Transport and Distribution."

During the period the company announced the acquisition of the remaining half of the Biomass business and the intention to invest in developing the property portfolio. The Biomass division is expanding quickly and already exports from six ports.

In the Transport and Distribution division actions were taken in response to difficult market conditions, focusing on better fleet utilisation and operating efficiencies. This resulted in improved margins, despite the continuing weak economic background. The division also secured new and renewed business with Coca Cola, P&G, Tesco and Mercedes & Pirelli F1.

The company announced that property asset values have increased in its new Estates division and it has a number of potential property deals lined up.

In the Air division the company announced several milestones have been reached in the development of London Southend Airport during the six month period ended August 31. These include a new ten year partnership with easyJet commencing in April 2012 with, initially, three aircraft stationed at London Southend Airport offering seventy departures per week to nine European destinations. In addition, the company announced plans for extending the runway which should be completed in early 2012 in advance of the London Olympics.

Regarding the outlook for the rest of the year, Andrew Tinkler commented: "As a result of the actions we have taken in Transport and Distribution we expect to report further progress in the second half. The Board’s outlook for the year is broadly unchanged despite the tough environment".

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