17th Jan 2014 10:08
LONDON (Alliance News) - Transportation and distribution company Stobart Group Ltd Friday said underlying earnings before interest and tax across all its business units were slightly ahead of the previous year in the last four months of 2013, although it warned of higher-than-expected finance costs as debt reduction talks went on for longer than hoped.
In a trading update, the company said its transport and distribution unit, one of the largest in the UK, had performed in line with expectations over the busy Christmas period.
It said it had also continued to sell investment properties to cut its debt, generating GBP85 million since October.
It reached a deal with its lender to apply the net proceeds of disposals from its Moneypenny property investment portfolio to reducing its property loan, cutting the total by GBP64 million to GBP10.9 million. The Moneypenny portfolio now contains property with a value of GBP45.3 million.
"This welcome and significant reduction in the group's debt has taken longer to negotiate than originally anticipated and, as a result of the delay, the group's full year results will include a higher interest cost than anticipated as well as costs associated with the prepayment of the fixed rate loan," it said in a statement.
Stobart shares were down 0.9% at 135.75 pence Friday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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