Stobart full year report drives share price up

Road haulage giants Stobart Group (LON:STOB) has released a strong 12-month preliminary results report today, headlined by an increase in revenue of £16m and a pre-tax profit boost of £12m to £34.1m for the year ended 28 February. And a positive outlook for continued growth for the future has abetted the earnings figures to push the group’s share price six per cent up.

Rob Hull
shareprices.com - Wednesday, May 12, 2010

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Stobart Group is the UK's biggest road haulage firm

Stobart’s stock opened this morning 1.93 per cent up thanks to the results announcement and the FTSE 250, along with the sister FTSE indices, growing on the back of David Cameron’s appointment as the new Prime Minister and the confirmation of a coalition government of the Conservatives and Lib Dems last night.

And the haulage group’s shares continued to rise as much as 5.93 per cent before 09:30BST.

The announcement reported a revenue increase to £447.7m compared to £431.1m for the year prior, and also an earnings improvement after fleet financing costs of £13.7m.

The earnings per ordinary share improved to 11p compared to 7.7p at the end of the prior financial year.

And Chairman, Rodney Baker-Bates, confirmed a final dividend of 6p which will be paid to shareholders on 21 June.

Operating highlights for the 12-months included securing new contracts worth £50m a year and the launch of a weekly train service from Valencia to the UK ahead of the firm’s 40th year anniversary.

Andrew Tinkler, Chief Executive, said: These are very strong results given difficult trading conditions and the bad winter.

“This performance is driven by increased efficiency in our core business, new contract wins such as Unilever and developing strategic assets.”

And an outlook for the future was also positive with Baker-Bates adding: “We are very positive about the continued future growth potential across all the Divisions.

“We approach 2010/11 in a buoyant mood, forecasting better margins, further cost management opportunities, additional turnover from new contracts and substantial further progress in some of our recent acquisitions, such as London Southend Airport.”

The report comes on the back of Eddie Stobart, the son of the founder of the haulage firm named after his father, being arrested for drink-driving last month.

The 55-year old multimillionaire was stopped by an unmarked police car on April 18 but intends to contest the “borderline” breathalyser test.

 

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