Stobart’s year of deals sees profits in the fast lane
NORTH WEST transport and logistics group Stobart hailed a year a progress as it revealed a huge jump in sales and profits on the back of a number of key acquisitions in the last 12 months.
The Warrington-based group also confirmed its intention to buy Carlisle Airport for £14m from a company owned by its chief executive Andrew Tinkler and William Stobart, chief operating officer.
It said it plans to develop the site into a new Northern logistics hub, and joins London Southend Airport in the company’s airports portfolio.
In the 12 months to Febriary 28 revenue from continuing operations soared from £108.8m to £431.1m, while profits rocketed from £3.5m to £23.9m.
Andrew Tinkler, said: “We have achieved a great deal in our first full year as a listed company towards realising our vision of becoming the UK’s leading provider of multimodal logistics solutions.
“In particular, the difficult economic climate has provided us with opportunities to make opportunist and strategic acquisitions that are fully aligned to our strategy.
“Stobart is a strong and instantly recognisable brand and we are well placed to deliver our multimodal strategy. This will be achieved through harnessing the skills of our workforce, investing in our industry-leading management systems and developing our extensive assets in order to provide customers with the most efficient and environmentally-friendly transport and logistics solutions.”
Major deals over the last 12 months have included the acquisitions of Cheshire haulage firm James Irlam – which has been integrated into the Eddie Stobart road transport division; the purchase of WA Developments to form Stobart Rail; the acquisition of chilled transport firm Innovate Logistics out of administration last July; and the swoop for London Southend Airport last December.
After so much change, Mr Tinkler said the next 12 months was likely to see less activity.
“We will grow, but we will also be mindful of risk to ensure the right decisions are made. In terms of growth, the UK still presents us with opportunities, as Eddie Stobart has less than a 2% share of the total road haulage business in the UK, and there are also good opportunities in continental Europe and Ireland.
“The group has extensive assets that have great potential and we will focus on the development of the Rail, Ports and Air Divisions and continue to deliver operational synergies, remove waste and improve efficiency.
“We have the right management structure and the people in place to deliver our strategy. I see next year as a period of consolidation, when we will work hard to demonstrate our model to existing and new customers, develop the skills of our people and continue to create value for our shareholders.”
At the year end, the group had net debt of £120.7m up from £75.2m a year ago. The increase was attributed to, among other factors, growth in the vehicle asset backed finance lease debt of £26.1m following the continued growth and modernisation of the fleet.
Stobart said it was taking a conservative stance on its dividend policy, and would re-invest some of the cash it makes in the future of the business.
Chairman Rodney Baker-Bates explained: “The board considers it best to re-invest some of the cash generated by operations. This is particularly relevant at this time when funding is limited from banks and other institutions. This will enable the group to develop and exploit its assets in the ports and air Divisions for the longer-term benefit of its shareholders.”
A final dividend of 3.3p per share was declared, taking the full year total to 6p.
