17 Jan 2014 07:00
17 January 2014
STOBART GROUP LIMITED
('Stobart Group' or 'the Group')
Interim Management Statement
The following interim management statement for Stobart Group covers the period from 1 September 2013 to date.
The trend in underlying profitability that we reported with the Group's interim results has continued and underlying EBIT across all of the Group's Divisions for the period to 31 December 2013 was slightly ahead of the same period in the previous year. Our Transport and Distribution business has had a busy Christmas period and has performed in line with the Board's expectations.
In keeping with our strategy of developing Stobart Group's growth businesses and realising value where appropriate, the Group has continued to make profitable investment property disposals. In aggregate, since October 2012 the Group has generated £85.0 million from property sales with the intention of reducing debt. The Group has now reached agreement with its lender to apply the net proceeds of the disposals from the Moneypenny portfolio to prepayment of its property loan, reducing the loan by £64.0 million to £10.9 million and leaving the Group with property in the Moneypenny portfolio with a value (at 31 August 2013 valuations) of £45.3 million. This welcome and significant reduction in the Group's debt has taken longer to negotiate than originally anticipated and, as a result of the delay, the Group's full year results will include a higher interest cost than anticipated as well as costs associated with the prepayment of the fixed rate loan.
All of our businesses are continuing to make steady progress and we remain confident in their potential but there is more work to be done to achieve our longer-term aspirations now that the foundations for growth, in our Air and Biomass Divisions in particular, are in place.
Enquiries:
Stobart Group | +44 1925 605 400 |
Andrew Tinkler, Chief Executive Officer Ben Whawell, Chief Financial Officer
| |
Lansons | |
Tony Langham (tonyl@lansons.com) | +44 20 7294 3617 +44 7979 692287 |
Anna Schirmer (annas@lansons.com)
| +44 20 7294 3605 |
Influence Associates | +44 20 7287 9610 |
Stuart Dyble/James Andrew
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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