24th Oct 2013 09:38
LONDON (Alliance News) - Transportation and distribution business, Stobart Group said Thursday it is on track with its four-year shareholder value strategy as it reports a rise in revenue from continuing operations for the half-year.
Stobart Group said its investment phase its virtually complete and that the firm is focused on driving value from all of its divisions, reporting profits ahead of last year in all of its divisions.
Its mature business lines continue to perform well, said the firm, with revenue from continuing operations reaching GBP330.2 million for the half-year, up from GBP247.4 million last year, including automotive, previously Autologic, revenue of GBP54.5 million. Profit before tax from continuing operations was slightly down on last year at GBP10.4 million from GBP10.5 million.
As well as solid mature growth, the firm said that its growth businesses have increased volumes, revenues and profits.
Underlying operating profit was GBP20.8 million, up from GBP19.7million last year, while underlying profit before tax was GBP13.8 million, slightly up on 2012 figures for the half-year (GBP13.1 million).
The company said its Estates division - made up of the group's freehold and long leasehold property interests - saw a fall in revenue to GBP4.8 million, down from GBP6.8 million, with profit before tax of GBP1.2 million, down from GBP2.8 million.
The Infrastructure and Civil Engineering business reported a rise in revenues of GBP17.5 million, up from GBP16.2 million, with divisional profit of GBP1.3 million up from GBP0.4 million, including GBP7.9 million of external revenue, up from the comparable GBP4.6 million the previous year.
Revenue for the Stobart Air division was GBP10.4 million, up from GBP7.9 million last year. The divisional profit before tax was GBP0.1 million, up from a loss of GBP0.3 million last year. The airport was also rated the best UK airport in a Which? customer satisfaction survey during the period.
Earnings before interest, tax, depreciation, amortisation and internal rent is a key measure for London Southend Airport, reporting GBP0.7 million for the period, ahead of GBP0.2 million for the same period in 2012. Passenger numbers in the period were 528,000 - up 43% from 368,000 in the comparative period as the impact of the fourth home-based easyJet Airbus 319 has increased the number of available destinations, said the firm.
While UK operations have been hit by cutsomers' plant outages, revenue for the Stobart Biomass division was GBP11.3 million, up from GBP6.6 million last year, with a divisional profit before tax of GBP1.6 million, up from last year's GBP0.8 million.
Tonnage supplied in the period was 354,000 tonnes; up 52% from 232,000 in 2012 following the new contracts with Iggesund, Dalkia and Helius which commenced at the end of the last financial year.
The company confirmed an interim dividend of 2 pence, flat on last year, payable December 6 this year. Stobart also reduced its net debt during the half-year to GBP203.0 million from GBP216.4 million.
The company has started to bring its new Automotive fleet up to date by introducing new and remounted vehicles, as well as detachable semi-trailers, following a successful trial period. Stobart closed the Autologic head office in Northampton during the period as operational management staff were relocated to regional offices to bring them closer to operations.
Stobart said it remains focused on driving efficient gains, cash generation and selective realisations, as well as delivering good levels of customer service. Andrew Tinkler, Chief Executive Officer, said, "We are on track to deliver value across all of our divisions in line with our strategy. Our... Transport business continues to perform well and our growing Air and Biomass divisions are beginning to deliver on their potential."
Stobart Group shares are trading at 129.875 pence per share Thursday morning, up 0.29%.
By Alice Attwood; [email protected]; @AliceAtAlliance
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