Partial sale of Stobart’s logistics arm boosts profits to £111m-plus

The half-year performance of Cumbria-based infrastructure company Stobart Group has been boosted by the partial sale of Eddie Stobart Logistics, resulting in pre-tax pofits of £111.6m compared with just £10.8m in 2016.

The deal generated nearly £124m in its underlying EBITDA of £131m in the six months to August 31.

Stobart Aviation saw good progress, with passenger numbers growing 25% year-on-year to 610,492 through London Southend Airport, which it owns.

Meanwhile, Stobart Energy experienced delays in the commissioning of new-third party biomass power stations which have impacted short-term volumes by 33%, but EBITDA per tonne is ahead of target and long-term volume is unaffected.

Stobart Rail & Civil Engineering is on track to deliver target EBITDA on rail and non-rail civil engineering projects, against a reduction in external revenue.

Group chief executive Warwick Brady said: “Stobart Group continues to work towards its clear targets for its three growth divisions – Energy, Aviation and Rail & Civil Engineering – as well as driving growth in cash generation and returns to our shareholders.

“In the first half of the year, we achieved significant returns, in excess of £120m, from our investment in Eddie Stobart Logistics, in which we still hold a 12.5% investment.

“The sale and leaseback of eight ATR aircraft also generated significant cash, allowing us to further increase our quarterly dividends to 4.5p per share.

“Passenger numbers at London Southend Airport and our regional airline are up year-on-year as we continue to invest across the sector to meet the demands for increased capacity and improved customer experience.

“We are exploring ways to further develop this portfolio across our airport and airline asset base.”