24th Oct 2018 08:36
LONDON (Alliance News) - Stobart Group Ltd on Wednesday said it swung to a loss in the first half of its financial year, despite a 21% increase in revenue.
Stobart shares were trading down 6.8% at 200.41 pence each, the worst performer on the FTSE 250 index.
For the six months to August 31, the infrastructure & support services company, which owns London Southend airport, posted a pretax loss of GBP18.8 million compared with a GBP111.6 million profit in the same period a year ago.
The company's profit was hurt by the lack of income generated by the sale of its 49% interest in the parent of Eddie Stobart, Greenwhitestar Holding Company 1 Ltd, which resulted in a GBP123.8 million profit figuring in its interim balance sheet a year ago.
The company's interim revenue increased to GBP151.3 million from GBP124.6 million a year ago.
The company's Aviation business reported a earnings before interest, taxes, depreciation and amortisation loss of GBP2.7 million, due to a GBP18.0 million investment in London Southend Airport route development and marketing.
The airport saw passengers up 37% to 838,742 from 610,492 in the half, with agreements reached with easyJet PLC and Ryanair Holdings PLC.
Meanwhile, the company's Energy division Ebitda increased to GBP6.5 million from GBP2.5 million a year prior, driven by customer mix, benefits of increased volume and tight cost control.
Chief Executive Officer Warwick Brady said: "We have remained focused on operational progress in our Aviation and Energy divisions, which have both performed well in the period.
"Having invested in the infrastructure for these divisions, we are now well placed to accelerate our commercial growth plans and demonstrate the value of the group's excellent operating businesses."
Currently, Stobart is engaged in a courtroom battle against former chief executive Andrew Tinkler who had its employment with the group terminated in June for "breach of contract and breach of fiduciary duty" after Stobart accused him to have "jeopardised" the future success of the group.
Tinkler also tried to oust Chairman Ian Ferguson, a move that "totally" countered the company's interests and threatened to destabilise it, Stobart said.
Tinkler denies wrongdoing saying he was removed for no good reason.
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