3rd Mar 2015 10:23
LONDON (Alliance News) - Stobart Group Ltd Tuesday said it has signed its third "major" biomass supply contract in the last four months, a 20-year deal to supply 5.2 million tonnes of waste wood to a biomass plant in Rotherham starting in 2017, and its overall underlying operating performance across its businesses has met management hopes.
It said the deal means it now has deals to supply 1.75 million tonnes of biomass by 2017 compared with its target of 2 million tonnes, with further projects in the pipeline.
Stobart will not be involved in the financing of the latest project, but expects it to achieve financial close in the next two weeks. The contract with with Brite Partnership (North East) Ltd.
"This agreement means that in the last four months alone we have secured additional supply volumes for the Stobart Energy division totalling some 750,000 tonnes per annum from 2017 onwards through three long-term, index-linked contracts," Richard Butler, the head of Stobart Energy & Infrastructure said in a statement.
The company also said underlying trading in its operating businesses is in line with management expectations. It said passenger numbers at London Southend Airport grew 9% to 1.09 million in the financial year to February 28, while its rail division has continued to grow revenue with external customers on railway-related projects.
"The Infrastructure and Rail divisions are both performing well with opportunities to develop. We have realised GBP26.4 million in cash from property sales in the past year and we have plans for further disposals in the year ahead," Stobart Group Chief Executive Andrew Tinkler said in a statement.
Stobart Group expects to announce its results for the year on May 14.
Its shares were flat at 107.75 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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