On track Stobart returns £13.1m to shareholders
INFRASTRUCTURE and support services company Stobart Group says it is on track to deliver value in its high growth energy and aviation divisions and has returned £13.1m to shareholders in dividends.
The Carlisle-based Group’s interim results for the six months to August 31 reported revenue unchanged from the same period in 2014 at £57.6m, although underlying EBITDA was up 3.4% to £9m.
Underlying earnings per share from continuing operations increased to 1.58p (2014: 0.97p) and the proposed interim dividend was 2p per ordinary share, the same as in 2014.
The company said it was on target with current work and had secured future contracts to exceed its target of supplying 2 million tonnes of biomass fuel per annum by 2018.
Meanwhile, the company has continued its drive to deliver 2.5 million passengers at its London Southend Airport and has three new routes, operated by easyJet , to Lanzarote and Lyon – starting in November and December respectively – and Paris in February 2016.
Consideration is also being given to the development of airport assets including runway improvements, and proposed new routes at Carlisle Lake District Airport.
In the rail division, a £4.1m track lowering scheme from Walsall to Rugeley was completed in the period for Network Rail, as was the Watford Tunnel brick replacement project at a cost of £700,000.
Other schemes include the start of work on a £7.2m biomass plant at Widnes for Burmeister & Wain Scandinavian Contractor.
“Rail infrastructure work is expected to perform well in the second half, supported by a strong order book value of c£61m for external works due to commence over the next 12 months, with revenue and underlying EBITDA expected to improve year-on-year,” its statement said.
The construction of a £2.1m solar farm at London Southend Airport is due to be completed in December when work is also set to start on a wood processing facility at Tilbury Dock.
Chief executive Andrew Tinkler said “We have continued to focus primarily on delivering value in our two high growth divisions of energy and aviation, and we are progressing well with building the infrastructure and relationships to successfully develop these businesses.
“Our other divisions are performing well with a strong order pipeline in the rail division, growing profitability in Investments and realising cash from property sales.”
