STOB.L Share News (STOB)

(Sharecast News) - Stobart Group's troubles continued on Wednesday as the airport-to-biomass group reported a widening of half-year losses of £17m from a £11m.The company, embroiled in a bitter boardroom battle for most of the year, said revenue rose 21% to £151m, including a £15.7m contribution from its franchise deal with Flybe at the Stobart-owned Southend airport.Stobart said that deal would end by the end of the 2019 financial year after agreements with easyJet and Ryanair to expand their operations at Southend.Passenger numbers at the airport increased 37% to 838,742."EasyJet's decision to base a fourth aircraft at the airport is expected to result in over one million easyJet passengers in 2018," Stobart said."We also signed a milestone agreement with Ryanair to base three aircraft at London Southend, expected to bring a further one million additional passengers annually from Summer 2019.""Including agreements with Air Malta and Adria Airways, we are now offering routes to an additional 11 destinations and expect to welcome circa 2.5m passengers in 2019."There was a shakeup at the rails and civil engineering division, which posted an underlying loss of £4.8mln. The finance director was replaced and new commercial team appointed, Stobart said.At the biomass unit, underlying profits rose 89% to £8.7m as revenue increased to £29.9m from £25.3m.The boardroom soap opera that enveloped the company earlier this year when former chief executive tried to have chairman Iain Ferguson removed.Stobart sacked Tinkler in June, adding that it was starting legal proceedings against him. In a tit-for-tat move, Tinkler retaliated with defamation proceedings against the firm's board.Stobart said litigation costs for the period were £1.5m including "costs incurred in relation to the ongoing board dispute and associated legal claims".A judge is due to start overseeing a trial at the High Court in London on November 12. In August Stobart accused Tinkler of spending more than £4.5m on expenses, including helicopters and horse racing sponsorship, according to court documents.The Daily Telegraph reported at the time that Tinkler spent £1.6m on premium travel between 2015 and 2018. A further £2.9m was claimed for corporate entertainment from late 2014 and to February 2018.Included were bills for £65,000 and £67,500, from December 2015 and 2016 respectively, which referenced popstar Ronan Keating.The Boyzone singer took to social media in July to say "absolutely disgraceful what they are saying about our friend Andrew Tinkler . The company would not be where it is without him".Keating also helped distribute a letter from Tinkler to shareholders via his Twitter social media account.Stobart also alleged that last November, Tinkler, fund manager Neil Woodford and Edinburgh Woollen Mill owner Philip Day plotted to buy 60% of Stobart Group's airline business for £20m as part of a potential takeover of Flybe in a move that would have seen them sell that interest three months later for £40m.It says the proposal would have benefited Tinkler and other consortium members but was not in the interests of the group or other shareholders. Tinkler denies the claim.