STOB.L Regulatory News (STOB)

16 Jan 2009 13:23



Stobart Group Limited

('Stobart' or 'the Group')

Interim Management Statement

16 January 2009

Stobart, one of the UK's leading providers of multimodal transport and logistics services, is issuing its Interim Management Statement covering the period from 24 October 2008 to the current date. 

The Group 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, Innovate and Irish businesses acquired earlier in the year is on-track to complete by the financial year end and will show operational synergies and cost savings.   

Port operations are slightly behind expectations, due to a downturn in Far East imports. However port assets are being utilised in its UK customer operations. Construction has started on warehousing facilities at the in-land port after receiving planning permission in December. It is anticipated that this development will create upto 1,200 jobs in the year ahead to service all its customer base.

Rail freight is 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 to Inverness service on 20 January. The rail civil engineering operations are performing well above expectations, with significant contracts delivered including the major slab-track renewal at Hampstead Heath. This division is playing a big part in delivering value engineering to the Group's on-going development at its inland port at Widnes. 

Following the acquisition of Southend Airport in December, the group is making progress in developing a new railway station. Talks are at an advanced stage with a hotel operator for a new hotel to be built at the Airport. The Group has also announced its intention to pursue the exercise of its option to purchase Carlisle Airport, where it aims to develop a new purpose-built distribution centre, consolidate its Carlisle sites, make operational savings and create upwards of 100 jobs. This transaction is subject to shareholder approval in the near future. 

The Group has been working hard with existing and new customers to further develop and enhance its service offering. The Board expects this to produce results and for significant new business to be won in the coming months. 

The above, 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 strategy to become the UK's leading provider of fully integrated multimodal transport and logistics solutions. 

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 or Karlie.Nicholls@collegehill.com.

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