22nd Oct 2015 07:40
LONDON (Alliance News) - Infrastructure and support services company Stobart Group Ltd on Thursday posted a pretax profit in the first half, as one-offs it booked a year earlier did not repeat, though its underlying pretax profit and revenue were both broadly flat, as was its interim dividend.
Stobart said its pretax profit in the six months August 31 was GBP600,000, compared to a GBP8.6 million loss it booked a year earlier when it booked GBP8.1 million in exceptional finance charges related to the repayment of a GBP100 million variable rate loan with M&G Investment Management Ltd and repayment of a substantial proportion of a property loan with GE Real Estate Finance Ltd.
Stripping out one-offs, the group's underlying pretax profit in the first half rose to GBP4.6 million from GBP4.4 million, as its underlying margins improved and revenue came in flat at GBP57.6 million.
Stobart said is is on track for its current work and future secured contracts and is on track to exceed its target of delivering 2 million tonnes of biomass fuel per year by 2018.
The company said it will pay a flat interim dividend of 2.0 pence per share.
"We have continued to focus primarily on delivering value in our two high growth divisions of energy and aviation, and we are progressing well with building the infrastructure and relationships to successfully develop these businesses," said Andrew Tinkler, Stobart's chief executive.
"Our other divisions are performing well with a strong order pipeline in the rail division, growing profitability in investments and realising cash from property sales," Tinkler added.
Stobart shares were down 0.8% to 111.1 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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