Aviation group ‘minimising cash burn’ as it battles headwinds
Aviation and energy infrastructure group Stobart Group is “minimising the cash burn” across the business as it responds to the ongoing impact of the Covid-19 crisis.
The Carlisle-headquartered group raised £100m from the markets in June to support its balance sheet and is now looking to make progress on its strategy of caution and being prepared for an upturn.
Warwick Brady, chief executive of Stobart Group, said: “The group is executing the strategy it set out at the time of the capital raise and is employing strict financial discipline to safeguard both the operational capability and the value of its core assets to ensure it will be positioned to respond to a recovery in demand.
“We are delivering a cost-effective passenger-focused experience at London Southend Airport; we are reviewing the strategic options to realise value from Stobart Energy; we have exited the Rail & Civils business ahead of plan; and we continue to evaluate opportunities to dispose of remaining non-core assets.”
In a trading update covering the six months to August, Stobart Group said its core operations at London Southend Airport and Stobart Energy “are operating within the scenarios set out” in June, when it raised cash from investors.
However Stobart Air is performing less well and the group reiterated that it is in talks to sell the business.
It said: “The group is engaging actively with a number of parties interested in acquiring its stake and with Aer Lingus to enter into a new commercial arrangement beyond December 2022 as part of this process.”