Stobart swings to full-year loss but revenue rises

Southend airport owner Stobart Group said on Wednesday that it swung to a full-year loss, partly on the back of legal fees, but revenue rose thanks to an improvement in its two core operating businesses.

In the year to 28 February, the company swung to a loss of £58.2m from a profit of £100m the year before, while revenue rose 39% to £146.9m.

Stobart said the loss for the year reflects a combination of investment in its aviation and energy divisions, one-off legal costs - mainly related to the group’s dispute with former chief executive Andrew Tinkler - and non-cash items resulting from the intention to ensure a de-risked balance sheet.

Underlying earnings before interest, tax, depreciation and amortisation fell 24% to £10.8m.

In the aviation segment, passenger numbers grew 33% during the year to 1.5m, while revenue pushed up 53% to £39.4m and underlying EBITDA jumped 177% to £4.9m.

In the energy division, revenue rose 19% to £65.1m and underlying EBITDA increased 60% to £19.2m.

Chief executive officer Warwick Brady said: "This has been a transformational year for Stobart Group. We have significantly strengthened the board and management team and taken the opportunity to deal with legacy issues while putting in place appropriate operational rigour within the business. As a result of the disposals and impairments in the year, the group has de-risked its balance sheet.

"Stobart Group has a clear focus on developing infrastructure assets in the aviation and energy sectors. These are high growth assets with strong market positions that are now well positioned to become increasingly cash generative.

"We will invest in accelerating the growth of our aviation and energy businesses through existing cash resources and further non-core asset sales. By doing this, we can deliver sustainable operating cash flows and significant long-term value for shareholders."

At 0806 BST, the shares were up 1.7% to 119.38p.