Stobart trucks higher on bumper dividend plans

(ShareCast News) - Stobart Group pledged to hike the level and frequency of its already generous dividend after generating cash from an asset sale and seeing encouraging developments from its three divisions.Directors have proposed paying a 3p dividend each quarter, beginning in October, and possibly increasing the level of the payout or returning cash to shareholders through share buybacks or special dividends when cash surpluses allow.This follows the proposed 4p final dividend announced in May and subject to approval from shareholders at the annual meeting being held on Thursday, which would bringing the total dividend for the year to 6p per share.Also in May Sotbart, which sold half of its iconic trucking business in 2014, sold its Speke investment property, realising £37m of cash and generating a profit of £11.6m in the new financial year.Of its three remaining divisions, Stobart said Energy, its biomass arm, had supplied 247,000 tonnes of biomass fuel in the three months to 31 May, a 2% increase year-on-year. It is currently developing processing sites to meet up to 50% of the contractual requirements from our own facilities with the remainder being sourced from partners.In Aviation, London Southend Airport saw like-for-like passenger numbers and load factors "broadly in line" during the three months to 31 May, while revenue per passenger increased.The airport is said to be in "advanced talks" with a number of low-cost carriers and full service operators that are interested in using the airport during times of peak London capacity.Railway maintenance, which management aim grow 20% per annum by 2018, was reported to have a strong order book and made a successful start to the contract with London Underground for electrification between Gospel Oak and Barking.