Stobart Group Limited COVID-19 Trading Update (8145I)
06 Aprile 2020 - 8:00AM
UK Regulatory
TIDMSTOB
RNS Number : 8145I
Stobart Group Limited
06 April 2020
6 April 2020
STOBART GROUP LIMITED
("Stobart Group" or the "Group")
COVID-19 Trading Update
Stobart Group provides the following update regarding the
measures it has taken to date to safeguard its business operation
in response to the COVID-19 outbreak.
The Group owns and operates two valuable growth businesses in
London Southend Airport and Stobart Energy. The Board and
management team have moved swiftly and taken proactive steps to
protect its liquidity and cashflow.
Actions taken by Stobart Group to date include;
-- A freeze on all capital expenditure spend other than where it
is considered critical for safety reasons. All discretionary spend
has also been deferred;
-- Stobart Group has utilised the UK Government's Job Retention
Scheme to put on furlough c50% of Stobart Group's 1,500+ employees
as of 1 April 2020. All employees in continuing roles that allow
them to work from home are doing so;
-- The Board and Senior Leadership have agreed to 20% pay
reductions and all other non-furloughed management have accepted
10% pay reductions;
-- A recruitment freeze has been in place since early March and
all variable pay awards have been deferred to August 2020 at the
earliest;
-- Stobart Group has utilised all measures made available by Government to help conserve cash.
These steps have been taken both to maintain the operational
capability of our core businesses and ensure they are well placed
to gear back up when the recovery takes place. At all times we have
committed, as a responsible business, to follow all Government
advice. The safety and wellbeing of our staff and the communities
we operate in have been at the forefront of the Board and
management's thinking.
The cumulative effect of these actions is to preserve the
Group's liquidity and provide cash headroom. Given the level of
current uncertainty, particularly regarding the potential duration
of the crisis, the Board is also taking prudent steps to explore
further funding options.
The Board has determined it is not possible to provide financial
guidance for the Full Year at present and is withdrawing all
previously made guidance.
Stobart Aviation
London Southend Airport's airline partners have, for the most
part, suspended operations, with airlines taking the opportunity to
ground fleets at London Southend Airport. Over 20 aircraft are
currently based on the airport's stands. Wizz Air continues to
operate a reduced service of three weekly flights to Bucharest.
Loganair continue to operate flights to Aberdeen and Derry three
times a week, and these Wizz Air and Loganair operations are served
by a skeleton airport staff.
The airport's global logistics operation continues to operate as
normal. The importance of maintaining the logistics network in the
UK means that people working at that operation have been assigned
Key Worker status. Strict safety protocols and procedures are in
place throughout our operations in order to protect people working
there. The Holiday Inn hotel at the airport remains open and is
providing accommodation for Key Workers and we are seeking further
opportunities to support community groups.
Stobart Energy
Stobart Energy is currently maintaining its operation with
renewable energy plants continuing to require waste wood fuel in
order to generate circa 2% of the UK's electricity needs. The
importance of supplying fuel to support these plants has meant
drivers and associated employees have been assigned Key Worker
status.
The key risk to Stobart Energy's ongoing operations is the
availability of waste wood. The significant slowdown in
construction alongside the closure of Local Authority-operated
Household Waste & Recycling Centres has reduced the volume of
new waste wood being made available. The low levels of available
waste wood may impact on future gate fee pricing for an extended
period.
Stobart Energy is engaged with its renewable energy plant
partners to discuss options to accept different specifications of
waste wood fuel. As a precautionary step, Force Majeure or Pre
Force Majeure notices have been issued to the majority of our major
renewable energy plant partners.
The division is further engaged with the UK Government to
request the reopening of Household Waste & Recycling Centres
and recommend that all available waste wood is prioritised for the
use in renewable energy plants.
Warwick Brady, Chief Executive, Stobart Group said, "The
challenges presented by the rapid spread of the COVID-19 virus have
been significant. However, I am immensely proud and humbled by the
response of our people to this global crisis. We have acted at pace
to put in place steps to safeguard our business in the immediate
term, and our people have consistently understood and supported the
actions we have taken.
"Despite the current challenges presented by the COVID-19 virus,
we continue to own and operate aviation and energy assets with
significant underlying value. There remain significant medium and
long-term opportunities to further increase the value of the assets
for our stakeholders.
"We are maintaining regular communication with our partners and
ensuring we are well placed to get back to full operation quickly
once this exceptionally challenging time has passed."
The person responsible for arranging the release of this
announcement on behalf of Stobart Group is Louise Brace, Company
Secretary.
Enquiries:
Stobart Group Limited C/o Newgate Communications
Charlie Geller, Communications Director
Newgate Communications +44 203 757 3406
Giles Croot +44 203 757 6884
Ian Silvera stobart@newgatecomms.com
Megan Kovach
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END
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