20 Aug 2010 07:00
Stobart Group Limited
('Stobart' or 'the Group')
Pre-Close Trading Statement
20 August 2010
Stobart Group ('Stobart' or 'the Group'), one of the UK's leading providers of multimodal transport logistics solutions, is issuing its pre-close trading statement prior to the announcement of interim results, expected on 20 October 2010.
The Group's performance in the first six months of the year is in line with management expectations and is significantly ahead of the same period last year. We expect continued growth in the second half as new contracts start to deliver, whilst we recognise the economic environment remains challenging.
Eddie Stobart - The volumes in Eddie Stobart remain strong, benefiting from new contracts announced in the last 12 months including a recent significant new contract win for transport and warehousing for AG Barr worth around £7m per annum. Increased volume volatility has created some challenges for the business which are being addressed through working closely with our customers. Overall trading is in line with expectations and significantly ahead of last year. The full effect of the previously announced A W Jenkinson and Tesco Widnes chilled contracts will add growth in the second half.
Trading at Stobart Biomass Products, which was acquired earlier in the year, is in line with expectations. This business including AHS Energy, which was acquired in July 2010, is expected to be profitable for the full year.
Stobart Rail - The rail freight business is performing well and new routes are being developed with customers. The rail engineering services trading is steady, however, due to uncertainty over future Government expenditure demand from Network Rail remains flat. As a result, overall performance for this division is slightly below expectations but the business continues to present exciting opportunities for the Group with major projects at London Southend Airport and other Group sites and these projects also ensure that plant and labour in the division are utilised.
Stobart Ports - Performance at Stobart Ports is marginally ahead of expectations due to tight cost control with steady volumes but limited growth. After a successful marketing day, management are pursuing opportunities to further develop the remaining 95 acres of land at the inland port.
Stobart Air - At London Southend Airport, both the new railway station and control tower are still on target to be virtually completed by the end of 2010. Performance is in line with expectations and negotiations are ongoing with interested airlines.
20 August 2010
ENQUIRIES:
Stobart Group 01925 605400
Andrew Tinkler, Chief Executive Officer
Ben Whawell, Chief Financial Officer
i-nfluence 0207 2879610
James Andrew