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22 Jan 2010 07:00
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Stobart Group Limited
('Stobart'Ā orĀ 'the Group')
Interim Management Statement
Stobart, one of theĀ UK's leading providers of multimodal transport and logistics services, isĀ issuing its Interim Management Statement covering theĀ period fromĀ 22Ā OctoberĀ 2009Ā to the current date.Ā
The BoardĀ isĀ confident that it willĀ meetĀ its year endĀ pre-tax profitĀ expectations and deliverĀ further value from its substantial asset base.Ā
The GroupĀ has had a yearĀ ofĀ consolidation,Ā whilstĀ finalising the integrations of its acquired businesses and restructuring certain divisions.Ā The foundations of the multimodal strategy are in place toĀ provideĀ growth over the coming year.
Road transport and warehousing operationsĀ experiencedĀ reasonably staticĀ revenuesĀ compared to the prior yearĀ with new businessĀ secured forĀ growth during the next financial year.Ā Operational synergyĀ benefitsĀ and further efficiency improvementsĀ are expected toĀ lead toĀ a good improvementĀ in PBT margin, which will be in line with management's expectations. Unfavorable weather conditionsĀ at the start ofĀ January proved a challenge but by working in partnership with our customers and thanks to the commitment of our drivers, we have continued to deliver a comprehensive service throughout these tricky times for transport.
Port operationsĀ have remained steadyĀ during the financial year and although like-for-like revenue will be slightly lower the profit before tax will show a significant improvement.Ā Phase 1 of the inland port developmentĀ wasĀ completed in the year andĀ there is interest from existing and new customers for the next phases.
RailĀ operations are performing very well with the freightĀ servicesĀ growing through the recently commencedĀ ValenciaĀ chilled service.Ā The rail civil engineering operations are performing well above expectations,Ā withĀ a good mixture of profitable rail and engineeringĀ contracts deliveredĀ during the year. Overall,Ā it is expected thatĀ railĀ willĀ be significantly ahead of the prior year.Ā
SouthendĀ AirportĀ received a recommendation for approval of theĀ runway extensionĀ planning application from the local Councils on Wednesday 20 January and, as expected,Ā a Section 14 notice has been served.Ā WeĀ hope forĀ a quick decision on the Section 14 notice toĀ allow us to completeĀ construction ofĀ theĀ Airport to service the 2012 Olympics. The construction ofĀ a new airportĀ railway station continues and we expect this toĀ open in earlyĀ summer. The development of the Carlisle Airport Group distribution centre will commence in Spring of this year. The Airport operations are in line with management expectations.
In addition, the Group is committed to developing its assets in the Ports and Airports division to improve returns to shareholders. As highlighted at the interim date, Stobart expects to realise the valueĀ and profit inĀ certainĀ existing assetsĀ with the consequential benefit to the balance sheet and a significantly reduced net debt figure at the year end.
StobartĀ willĀ announceĀ itsĀ full yearĀ results, for the year endedĀ 28Ā February 2010Ā onĀ Wednesday 12 May 2010.Ā Ā Details of the location and time for the analyst presentation will be announcedĀ in due course.
22 January 2010
ENQUIRIES
|
Stobart Group Andrew Tinkler, Chief Executive Officer Ben Whawell, Chief Financial Officer |
01925 605 400 |
|
College HillĀ Mark Garraway Gareth DavidĀ |
020 7457 2020 |
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