Interim Management Statement

RNS Number : 9614H

Stobart Group Limited

27 June 2013

 

STOBART GROUP LIMITED

('Stobart' or 'the Group')

Interim Management Statement

Stobart Group Limited is a leading provider of multi-modal Transport, Distribution and Infrastructure services.

Stobart, issues the following Interim Management Statement - covering the period from the commencement of the new financial year on 1 March 2013 to date - to coincide with its Annual General Meeting, which will be held today.

The Group remains confident of delivering strong returns for shareholders over the coming years as its four year strategy (2011-15) moves from the investment phase to optimisation. We have had a satisfactory start to the year with a solid performance in the transport business and there are positive developments in the growing businesses.  Delivering on our medium-term value expectations for the Air and Biomass businesses requires us to drive volume through them and there is work to do, particularly in the Air division, to maximise revenues.

The Transport & Distribution division has had a steady start to the year. This is despite some FMCG customers reporting lower volumes in the first quarter. With reasonable weather over summer, this trend should be reversed, benefitting the business. Expectations for the business for the full year remain in line with forecast.  Work has continued to achieve further efficiencies in Stobart Automotive including the closure of the head office and roll-out of the innovative semi-trailer.

In the Estates division management continues to pursue opportunities to realise value from asset disposals at the right time. One small sale has been completed, solicitors are instructed on a substantial disposal and discussions are advancing regarding the sale of other significant assets at attractive prices.

In the Civil Engineering division the external rail market remains flat and is likely to remain so for the rest of the year but there are signs that this will pick up strongly next year as Network Rail enters Control Period 5.

In the Air division, construction of the terminal extension at Southend Airport is almost complete and is scheduled to come into operation in phases before the end of the calendar year. The fourth easyJet aircraft began operating on 17 June and now that the infrastructure is nearing completion we are discussing adding routes with a number of parties. Our focus is on building passenger numbers, optimising income from all ancillary services and controlling costs.

In the Biomass division, tonnages as well as revenues and profits per tonne are ahead year on year. In the first quarter there have been some unexpected plant outages which have disrupted our service but our take or pay agreements reduced the impact of these interruptions. We are actively working to help move a number of projects, where we will be the key product supplier, towards financial close.

The search for a Chairman is progressing well. With the help of consultants, a number of strong candidates have emerged and discussions are continuing. In parallel, we are talking to potential new non-executive directors

Stobart Group expects to announce its results for the six months to 31 August 2013 on 24 October 2013.

ENDS

About Stobart Group

With over 5,900 employees operating from more than 50 sites across the UK and Europe, Stobart is a UK front-runner in the multimodal logistics, warehousing, civil engineering, rail infrastructure and biomass fuel sectors. At the core of the Group is the Transport and Distribution division, incorporating Eddie Stobart - the iconic name behind a huge road haulage fleet totalling some 2,400 vehicles, over 3,000 trailers and over seven million square feet of warehousing. Stobart Estates, Stobart Infrastructure and Civils, Stobart Air and Stobart Biomass divisions complete the Group's business structure.

www.stobartgroup.co.uk 

Enquiries:

Stobart Group	[phone]
Andrew Tinkler, Chief Executive Officer
Ben Whawell, Chief Financial Officer
i-nfluence Associates	[phone]
Stuart Dyble/James Andrew
Lansons Communications	[phone]
Tony Langham [e-mail]	[phone]
Anna Schirmer	[phone]

 

END

 

 

IMSBQLLLXQFEBBX