24 Aug 2012 07:00
Stobart Group Limited
('Stobart' or 'the Group')
Pre-Close Trading Statement
24 August 2012
Stobart Group ('Stobart' or 'the Group'), is issuing its pre-close trading statement prior to the announcement of interim results for the six months to 31 August 2012, expected on 25 October 2012.
The Group continues to pursue its stated strategic direction and remains confident that it will achieve its strategic plan and deliver significant shareholder value as planned.
The current recessionary climate has an ongoing impact slowing growth in the transport sector. The Group has positioned itself to be successful in difficult times with a clear five divisional strategy. This means that whilst short term performance in transport is lower than market expectations, long term expectations across the business remain robust.
The majority of the transport business has progressed well. The restructuring of the chilled business alongside bad summer weather was reflected in retail sales. This has resulted in some losses for the chilled fleet but the current restructuring will result in a more robust and streamlined business for the future.
The division completed the acquisition of Autologic Holdings plc on 9 August 2012 which adds many opportunities within the automotive market place.
Following recent announcements regarding ROC banding, the Biomass Division has received many new enquiries and contractual negotiations have been accelerated. Major contracts are now expected to commence in the last quarter and the Group is well positioned to deliver volume growth in 2012/13.
In the Air division, passenger numbers with easyJet and Aer Lingus continue to grow. London Southend Airport serviced around 250,000 passengers in the quarter to the end of July 2012. The airport has obtained planning consent to expand significantly the size of the passenger terminal and the airport was recently allocated London Metropolitan area designation by IATA. Air is a key deliverable within the 2015 plan and the Board are very pleased with progress to date within this area.
The Estates division is working on both further developments of its sites and profitable disposals. Given market conditions, progress on this has been slower than anticipated as the Group is focused on maximising value from the portfolio.
The Infrastructure and Civil Engineering division continues to add valuable engineering development of the Group's sites whilst focussing on profitable external work.
The Board continue to be firmly focused on driving the continued progress of the group and the delivery of value to shareholders.
ENDS
About Stobart Group
Stobart Group is listed on the London Stock Exchange in the FTSE250 (LSE:STOB). Operating from over 61 sites across the UK and Europe, Stobart Group 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 Stobart Transport and Distribution division, incorporating Eddie Stobart - the iconic name behind a huge road haulage fleet totalling some 3,000 tractor units and over six million square feet of warehousing. Stobart Estates, Stobart Infrastructure and Civil Engineering, Stobart Air and Stobart Biomass divisions complete the Group's corporate structure.
www.stobartgroup.co.uk
Enquiries:
Stobart Group | +44 1925 605 400 |
Andrew Tinkler, Chief Executive Officer |
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Ben Whawell, Chief Financial Officer |
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i-nfluence | +44 20 7287 9610 |
Stuart Dyble/James Andrew |
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Square1 Consulting | +44 20 7929 5599 |
David Bick/Mark Longson |
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