Stobart reports good progress in 2017

Stobart Group said it made good progress in 2017 as passenger numbers rose strongly at its London Southend Airport site.

In a trading update covering the year to the end of February the infrastructure and support services company proposed a 4.5p a share dividend for the fourth quarter. Stobart said it had non-operating assets that would support the dividend until 2022.

The company said: “Stobart Group has made good progress during the last year. The board remains confident of the group's performance and prospects. The group has non-operating asset resources available to support the dividend until 2022, and thereafter dividends are expected to be funded out of operating cash flow.”

At Stobart’s aviation division, passenger numbers rose 25% at London Southend Airport. Carlisle Lake District Airport will open in summer 2018.

At the energy division, Stobart has put in place a supply chain to supply 2m tonnes of renewable energy fuel to UK power stations. Some of the power stations were delayed but more stations are coming on line, Stobart said.

The rail division is building the terminal at Carlisle Lake District Airport and upgrading the car park and stands at the group’s airport in Southend.

Disposals brought in £27.3m in cash during the year. The group’s investment in Eddie Stobart, the logistics company it split from in 2014 “performed satisfactorily”.