3rd Dec 2018 09:08
LONDON (Alliance News) - Stobart Group Ltd said Monday it intends to reduce its fourth-quarter dividend - resulting in a lower total dividend - to invest in "value-creating opportunities" and maintain a "strong" balance sheet.
The infrastructure and support services company - which owns Southend airport - will reduce its fourth-quarter dividend to 1.5 pence from 4.5p in the same period last year.
As a result, Stobart Group said it will pay a total dividend of 15p in the current financial year, down from 16.5p it said on Monday it had paid in the previous financial year.
The company also said it has continued its growth plans for Stobart Aviation and Stobart Energy with trading in the second half in line with expectations.
The commercial agreements signed by Southend airport with Ryanair Holdings PLC and easyJet PLC give the company confidence it will record "significantly" increased passenger numbers from next year.
Stobart Group said it is targeting 5 million passengers from 2022 at GBP10 earnings before interest, tax, depreciation and amortisation per passenger.
The company is currently undergoing a "detailed capital review" and intends to update the market on the results with its pre-closing trading statement in March 2019.
Shares in Stobart Group were down 8.1% Monday morning at 181.60 pence each.
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RYA.LSTOB.LeasyJet