Stobart looks for £25m on bond market

WARRINGTON logistics group Stobart is aiming to raise £25m from private investors through the London Stock Exchange’s retail bond market.

It is offering 5.5%, with a minimum investment of £2,000.

In recent years the group has moved into a number of areas, alongside its traditional logistics business, including flight services, renewable energy, property and law.

It is understood the group will use the cash to develop its airport in Carlise and a renewable energy plant in Widnes.

Chief financial officer, Ben Whawell, said: “Following a successful UK road show to test market conditions for a retail bond issue, we are very pleased to announce our entry to the market today.  

“We enter the market on the back of significant expansion of the group, with developments in our air, biomass and estates divisions now delivering results and bringing benefits across the business.”

In the six months to the end of August sales dipped 1% to £278.5m and pre-tax profits fell to £6.6m from £14.6m.

The Warrington group said this was largely down to costs associated with a restructuring at its underperforming chilled business.

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