Stobart Group Limited Pre-Close Trading Statement (2979Q)
29 Agosto 2014 - 8:01AM
UK Regulatory
TIDMSTOB
RNS Number : 2979Q
Stobart Group Limited
29 August 2014
29 August 2014
STOBART GROUP LIMITED
('Stobart' or 'the Group')
Pre-Close Trading Statement
Stobart Group, the infrastructure and support services group,
issues the following pre-close trading statement prior to the
announcement of the interim results for the six months to 31 August
2014, which is expected to be made on 23 October 2014.
Andrew Tinkler, Chief Executive Officer, said "We have seen
encouraging year on year growth in biomass tonnages supplied and
passenger numbers, which are key performance indicators in our
Energy and Aviation divisions respectively. Whilst the rate of
development against our plans in these growing businesses is hard
to predict accurately in the short term, the Board is satisfied
with the performance achieved to date and is confident of
delivering strong returns over the medium term. In the period to
date we have returned to shareholders GBP34.6m via share buybacks,
and GBP13.2m via dividends paid in July."
Following the partial realisation of the Transport &
Distribution business in April, the Group is now organised in five
divisions: Infrastructure, Energy, Aviation, Rail and Investments.
This is the first year of operation for our new divisions and it is
pleasing to be able to report satisfactory progress in all of
them.
In our Infrastructure division, we are targeting financial close
for investment in two large combined heat and power (CHP) energy
plants over the next six months. We have continued our strategy of
active property asset management and disposals, with the completion
of the sale of four properties in the period to date, realising
GBP12.7m of cash. Discussions are on-going around potential future
disposals and we are hoping to realise at least a similar level of
cash in the second half.
We have secured planning permission at our Carlisle Airport site
for an air/road freight distribution centre, which also opens up
potential opportunities for further development at the site
including passenger and air freight services. In addition, we have
secured planning permission for 100 residential houses at our
Chelford site.
In the Energy division, tonnages supplied are over 50% ahead
year on year in the period to 31 July 2014. However, profit per
tonne overall is lower as margins have been affected by a higher
proportion of exported products in readiness for UK plants coming
on stream, and transport profits are reduced year on year following
the ending of a contract on 28 February 2014. Looking forward, cost
management work undertaken in the first half is expected to benefit
the next six months. We have reorganised our processing sites to
allow more efficient supply of products to our customers. We
recently entered into a 12 year fuel supply contract for a combined
heat and power plant in Speyside, which is expected to be
commissioned in 2016. In addition we are at an advanced stage of
negotiation for a number of further significant potential supply
contracts with plants which are looking to reach financial close in
the near future.
In the Aviation division, passenger numbers are over 20% ahead
year on year in the period to 31 July 2014. The passenger-related
revenue per passenger has also grown by over 10% year on year. This
growth has directly benefited underlying EBITDA. We have also been
focussed on restructuring management and developing the airport's
systems to make the airport operation more efficient. For the
second year running the airport has topped the Which? airport
passenger satisfaction survey with an improved rating, but there is
still work to do in some areas. Based on known traffic, the
passenger numbers may be flat in the next six months but we are
actively working with operators to identify opportunities to bring
further traffic into that period. For example, we have recently
announced that SkyWork Airlines will be operating a twice daily new
route to Bern starting in October 2014, after transferring this
route from London City airport.
Stobart Air, of which we own 45%, has recorded increased
passenger numbers for 13 consecutive months up to July 2014, and we
are working with the airline's management to identify further
opportunities.
The Rail division has grown revenue from external customers by
around 40% in the period to 31 July 2014, securing a promising
level of work at respectable margins, through collaborations with
contractors to Network Rail. This has partially compensated for the
lower internal development work in the first half, but we expect
that internal work will pick up in the second half. There is also
strong interest for rail engineering work in the next six
months.
Within the Investments division, the Transport &
Distribution business including Eddie Stobart, of which we own 49%,
is performing in line with management's expectations, although our
recorded share of profit will be subject to transaction accounting
fair value adjustments. Growth continues in the aircraft leasing
business, of which we own 33%; the eighth aircraft has been
delivered and all aircraft are operational.
We have restructured the Energy and Aviation divisions,
involving some restructuring cost, and incurred exceptional finance
costs in connection with the early repayment of GBP168m of bank
debt in March and April 2014, which has reduced the on-going
interest costs significantly.
Enquiries:
Stobart Group +44 20 7851 9090
Andrew Tinkler, Chief Executive
Officer
Ben Whawell, Chief Financial
Officer
influence Associates +44 20 7287 9610
Stuart Dyble/James Andrew
END
This information is provided by RNS
The company news service from the London Stock Exchange
END
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