Stobart Group sees full year results in line

Stobart Group expects its full year underlying results to be in line with management views and ahead of last year, with infrastructure exceeding its expectations.

In a pre-close trading statement ahead of results for the year ended 29 February, the company said the infrastructure division had delivered a strong performance, with strategic management of sites improving valuation of investment properties.

The infrastructure and support services group said Stobart Energy, a supplier of waste wood biomass fuel, is aiming to supply over 12m tonnes of biomass fuel annually by 2017/18.

The aviation division, meanwhile, saw passenger numbers lower than the previous year as it worked with easyJet under a new long-term contract to improve load factors and yields with a view to growing volumes again in the near future.

Stobart said the rail business continues to increase external revenues with another year of growth whilst maintaining margins and has a strong order book for the year ahead from long-term rail infrastructure projects for Network Rail.

Eddie Stobart Logistics, in which the company has a 49% interest, continues to grow in line with management expectations and has used cash generated from operations and from the dsposal of the UK automotive business to reduce debt.

Chief executive Andrew Tinkler said: “We have realised net cash of over £24m from asset disposals in the year. Cash generation from these assets will assist the group in the payment of dividends whilst the growth divisions mature.

The board will consider further distributions of surplus cash generated on future asset realisations."

At 1508 GMT, Stobart shares were up 4% to 104.75p.