ESKN Esken Limited

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RNS Number : 3376M

Stobart Group Limited

23 August 2013

STOBART GROUP LIMITED

('Stobart' or 'the Group')

Pre-Close Trading Statement

Stobart Group issues its pre-close trading statement prior to the announcement of interim results for the six months to 31 August 2013, which is expected to be made on 24 October 2013.

The Group as a whole has made solid progress in the first half-year of the financial year. The Transport and Distribution division is performing well, the Estates division has achieved realisations at strong values and we are working hard to ensure that our growing, Air and Biomass businesses achieve their potential. We remain confident of delivering strong returns over the medium term.

Andrew Tinkler, chief executive of the Stobart Group, comments:

"As stated in our annual results, we are now moving the business from investment phase into its value optimisation stage and we are making steady progress in this transition, in line with our four-year strategy. The management team is focused on delivering value to shareholders and we will continue to work on achieving the potential of each of our divisions"

The Transport and Distribution division will achieve a solid result for the period as a whole, despite swings in retail sales volumes due to the poor spring weather followed by very hot periods in June and July. Managing unforeseen volatility is challenging but the investment we have made in our planning systems allows us to meet our customers' needs. Their appreciation of the exceptional service we have been able to provide during the period stands us in very good stead for the future. We have begun to implement the division's systems in our Autologic subsidiary which we expect to enhance profitability over the coming twelve months. We expect the division to remain on track for the full year.

Our Estates division continues to focus on realisations where we consider assets to be mature. In July we completed the disposal of our property at Appleton Thorn at a profit and discussions are on-going in relation to other potential disposals.

In the Air division the terminal extension at London Southend Airport is almost complete and will be fully commissioned by the end of this year. The key to meeting our growth targets is the quality of the passenger experience and we are delighted that London Southend Airport has just been listed by Which? as the UK's best airport with a 5 star rating and 84% customer satisfaction: well above its rivals. Also, with the addition of the 4(th) easyJet aircraft based at the airport, EBITDA and operational cash flow are improving. With the infrastructure in place, achieving our profit and cash flow targets depends upon driving additional passenger numbers by establishing new services with existing and new airline customers and continuing to refine operations to improve revenue per passenger.

In the Biomass division, tonnages, revenues and profits are ahead year on year. Volume growth is difficult to predict and the team is focussed on plant operators existing demands to grow short-term revenues and on helping developers and funders to bring new power generation projects to financial close in order to secure long-term Biomass supply contracts. Stobart's reputation as a trusted logistics partner is enabling the Group to build a reputation as the preferred Biomass fuel supplier in the UK.

Having successfully completed a number of projects for other Stobart Group companies the Civil Engineering division's focus turns once again to third party customers and the rail sector in particular, which is expected to be increasingly active in the coming months. Project margins have been reasonable in the first half and the division is performing in line with management's expectations.

Across the Group the Board is encouraged by the trading performance in the first half of the year. There will be some exceptional cost resulting from the business restructuring of Autologic and the executive Board changes earlier in the financial year but with the announcement, today, of the appointment of the Group's new Chairman and with the significant opportunities to add value for shareholders that exist within the Group, the Board looks forward with confidence.

ENDS

About Stobart Group

With over 5,900 employees operating from more than 50 sites across the UK and Europe, Stobart is a UK front-runner in the multimodal logistics, warehousing, civil engineering, rail infrastructure and biomass fuel sectors. At the core of the Group is the Transport and Distribution division, incorporating Eddie Stobart - the iconic name behind a huge road haulage fleet totalling some 2,400 vehicles, over 3,000 trailers and over seven million square feet of warehousing. Stobart Estates, Stobart Infrastructure and Civils, Stobart Air and Stobart Biomass divisions complete the Group's business structure.

www.stobartgroup.co.uk

Enquiries:

 
 Stobart Group                        +44 1925 605 400 
 Andrew Tinkler, Chief Executive 
  Officer 
  Ben Whawell, Chief Financial 
  Officer 
 
 
 
 Lansons Communications 
                                      +44 20 7294 3617 
 Tony Langham (tonyl@lansons.com)      +44 7979 692287 
 Anna Schirmer (annas@lansons.com)    +44 20 7294 3605 
 i-nfluence Associates                +44 20 7287 9610 
 Stuart Dyble/James Andrew 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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