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16 Jan 2009 13:23
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Stobart Group Limited
('Stobart'Β orΒ 'the Group')
Interim Management Statement
16 January 2009
Stobart, one of theΒ UK's leading providers of multimodal transport and logistics services, isΒ issuing its Interim Management Statement covering theΒ period fromΒ 24 OctoberΒ 2008Β to the current date.Β
The GroupΒ has had a year of acquisitive growth and now has the core components to drive forward its multimodal strategy. Its 'pay-as-you-go' cost model is showing resilience in the economic downturn and enabling it to build its customer base.
Road transport and warehousing operations are slightly ahead of management expectations. The Integration of the Irlam,Β InnovateΒ and IrishΒ businesses acquired earlier in the yearΒ isΒ on-track toΒ complete by the financial year end and willΒ show operational synergies and cost savings.Β Β Β
Port operations are slightly behind expectations,Β due toΒ aΒ downturn inΒ Far EastΒ imports.Β HoweverΒ port assets are being utilised inΒ itsΒ UKΒ customer operations.Β Construction has started on warehousing facilities at theΒ in-land port after receiving planning permission in December.Β It is anticipated that this development will create upto 1,200 jobsΒ in the year ahead to service all itsΒ customerΒ base.
Rail freight isΒ benefiting from increased volumes and the Group is in discussion with many of its customers to move road transport to rail. It is officially opening its Grangemouth toΒ InvernessΒ service on 20 January.Β The rail civil engineering operations are performing well above expectations,Β with significant contracts delivered including the major slab-track renewal at Hampstead Heath.Β This division isΒ playing a big part in delivering value engineeringΒ toΒ the Group's on-going development atΒ itsΒ inland portΒ atΒ Widnes.Β
Following the acquisition ofΒ SouthendΒ AirportΒ in December, the group is making progress inΒ developingΒ a newΒ railwayΒ station. Talks are at an advanced stage with a hotel operator for a newΒ hotel to be built at the Airport.Β The GroupΒ hasΒ alsoΒ announcedΒ its intention toΒ pursue theΒ exerciseΒ ofΒ its option to purchaseΒ CarlisleΒ Airport,Β where it aims to develop a new purpose-built distribution centre, consolidate itsΒ CarlisleΒ sites, make operational savings and create upwards of 100 jobs. This transaction isΒ subject to shareholder approval in the near future.Β
TheΒ GroupΒ has been working hard with existing and new customers to further develop and enhance itsΒ service offering. The Board expects this to produce results and for significant new business to be won in the coming months.Β
The above,Β together with ensuring that the Groups costs are accurately monitored to reflect this trading environment means that the Board remains confident that it will achieve its year end financial expectations and deliver on its strategyΒ to become theΒ UK's leading provider of fully integrated multimodal transport and logistics solutions.Β
Stobart will announce its full year results, for the year ended 28 February 2009 on Tuesday 12 May 2009. Analysts are invited to a presentation at College Hill, The Registry, Royal Mint Court, London at 9.30am on this date. If you would like to attend, please contact Karlie Nicholls at College Hill on 020 7457 2007 orΒ Karlie.Nicholls@collegehill.com.
Further information:
|
Stobart Group Andrew Tinkler, Chief Executive Officer Ben Whawell, Chief Financial Officer JulieΒ Gaskell, Head of Communications |
01925 605 400 |
|
College HillΒ Mark Garraway Gareth DavidΒ |
020 7457 2020 |
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