Pre-Close Trading Statement

RNS Number : 3554X

Stobart Group Limited

28 August 2015

 

28 August 2015

STOBART GROUP LIMITED

('Stobart' or 'the Group')

Pre-Close Trading Statement

Stobart Group, the infrastructure and support services group, issues the following pre-close trading statement prior to the announcement of the interim results for the six months to 31 August 2015, which is expected to be made on 22 October 2015.

Energy

Our target is to supply over 2 million tonnes of biomass fuel per annum by 2017/18.

Our current customers require 1.2 million tonnes and, as announced earlier this year, long-term contracts have been secured to supply an additional 1 million tonnes from 2017/18 when further plants, which are currently under construction, are completed and commissioned. In the five months to 31 July 2015, the volume we supplied was at a similar level to the same period last year, despite some temporary power plant shutdowns due to unscheduled maintenance and significant operational issues, caused by the well-publicised delays at Eurotunnel. Margin per tonne is significantly ahead of the prior year as we have benefitted from an increase in volumes supplied to our long-term contracted UK customers and greater production efficiencies achieved at our own operational sites.

Aviation

Our target is to achieve over 2.5 million passengers annually by 2018 at London Southend Airport.

We reported in the AGM Statement in June that we are currently working with easyJet to determine the optimum capacity for the routes it currently operates from London Southend Airport. Stobart Group guided then that this would lead to a short-term fall in passenger numbers over the summer. As a result of this process, passenger numbers in the five months to 31 July 2015 decreased by 99,000 year-on-year to 410,000, but revenue per passenger increased.

Stobart Group's growing relationship with easyJet, coupled with discussions with other low cost airlines, gives us confidence we will be well placed to announce new routes and achieve our target of welcoming 2.5 million passengers to London Southend Airport annually by 2018.

Rail, Infrastructure, Investments

Our Rail division is trading well, achieving good margins and has a healthy pipeline for the rest of the year. In our Infrastructure division, we completed the disposal of the Worcester property in March 2015, realising £6.2m. The development of a new distribution centre at our site at Carlisle Lake District Airport is expected to be completed on time in September 2015. In our Investments division, Eddie Stobart Logistics is trading ahead of prior year.

Chief Executive Andrew Tinkler commented:

"We have continued to focus primarily on delivering value in our two high growth divisions, Energy and Aviation, and we continue to build the infrastructure and relationships to meet our targets in these markets. I am also pleased with the promising new contract wins in Stobart Rail."

Enquiries:

Stobart Group	[phone]
Andrew Tinkler, Chief Executive Officer Ben Whawell, Chief Financial Officer
Redleaf Polhill	[phone]
Emma Kane
Charlie Geller
influence Associates	[phone]
Stuart Dyble James Andrew

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