STOB.L Regulatory News (STOB)

21 Aug 2009 07:00

Stobart Group Limited

('Stobart' or 'the Group')

Pre-Close Trading Statement

21 August 2009

Stobart, one of the UK's leading providers of multimodal transport and logistics services, is issuing its pre-close trading statement, covering the period from 17 June to 21 August 2009.

Stobart's performance in the first six months of the financial year, during a period of consolidation, is in line with management expectations, namely materially level with the second half of the 2008/09 financial year. We expect a strong performance in the second half as a result of recently announced contracts, new business wins and action taken to reduce costs. The Board accordingly has confidence for the full year. 

Eddie Stobart - Volumes remain strong and last month we were pleased to announce a contract for the distribution of Tesco's non-food goods from Teesport. The chilled business continues to secure new contracts and has opportunities for significant new business in the coming months. The integration of this fleet is ongoing and the chilled business has contributed to the Group for the first time in the first six months of this year. In addition to revenue improvements, management continues to focus on cost reduction and efficiencies. 

Stobart Rail - There is ongoing focus on new services by rail, including the launch of a temperature-controlled intermodal service from Valencia to the UK. The civil engineering business continues to win new rail contracts and add value on the Group's capital projects at the two airports and the Widnes inland port. 

Stobart Ports - On 27 July, Stobart Rail achieved practical completion of the 528,000 sq.ft chilled warehousing development at the inland port. This facility, which will serve our chilled customer base, with one anchor customer, will be fully operational by the end of the calendar year. Volumes from deep sea imports remain steady at our inland port.   

Stobart Air - Plans are finalised to start the construction of our new distribution centre at Carlisle Airport and commence development of the new railway station at Southend Airport. We anticipate completion of the railway station in the first Quarter of 2010. 

Stobart continues to gather momentum as a leading multimodal logistics provider and one that differentiates itself through its pay-as-you-go cost model and its drive to take waste out of customers' supply chains through efficient partnership arrangements.

Over the period, the Group has made good progress in its new port and airport developments. It has continued to focus on new business and ongoing integration of acquired businesses. 

Stobart has a strong, diverse customer base and is showing resilience in the current economic climate. The Board remains confident that the Group will continue to prosper and deliver its strategy to become the UK's leading provider of multimodal logistic solutions

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