Troubled Stobart Group slips to £17.5m loss from £111m profit

Stobart Group

Troubled Stobart Group has slipped from a profit of £111m to a loss of £17.5m over the last year.

The firm, which is based in Cubmbria, has been at the centre of a bitter boardroom battle over the course of the last year.

Stobart Group has published its interim results against a backdrop of ongoing boardroom strife.

Andrew Tinkler

Former chief executive Andrew Tinkler has been trying to oust the current chairman and the row looks set to be taken to the High Court.

Tinkler, a former cabinet-maker, was chief executive of the business between 2007 and 2017.

A judge is due to start overseeing a hearing at the High Court in London next month as the row rumbles on.

There have been accusations of bullying at the firm but Stobart Group say a report found no evidence to back up the accusations.

The sharp drop in profits over the last year is largely due to the sale of the Stobart Logistics business last year.

The firm said it has made strong commercial progress during the last six months in its core operating businesses.

Stobart Aviation and Stobart Energy are both well-invested and set for significant growth.

The firm added that is has also moved quickly to put into the actions the steps it outlined following its AGM to strengthen the commercial management and governance of the group.

The company saw revenue growth of revenue growth of 21.4% to £151.3m. Net debt has increased to £75.6m.

The 2017 profit included £123.8m received from the partial disposal of Eddie Stobart Logistics. The 2018 loss also includes the investment in London Southend Airport route development and marketing of £18m.

The firm said it had strengthened the board with the appointments of Nick Dilworth as Chief Operating Officer and Ginny Pulbrook as Non-Executive Director.

It has also appointed Interim Chief Financial Officer Michael Williams and has taken on leading independent search firm, Russell Reynolds, to identify additional board appointments.

Alice Mayhew, a senior employment barrister at Devereux Chambers, carried out an independent investigation into the concerns raised regarding alleged bullying and whistleblowing.

This investigation was completed this month and found that there is no culture of bullying within Stobart Group.

Interviewees did not report having been bullied or subjected to undue pressure or having witnessed bullying or undue pressure being placed on others.

The report made a number of recommendations, and the company is currently reviewing how best to incorporate them.

Chief executive 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.”

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