Half-year profits down at Stobart
STOBART Group saw interim pre-tax profits more than halve due to restructuring costs, but said the underlying business was performing well.
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.
Underlying operating profits, which do not include £8.2m of share-based payments and finance costs, were up 4% at £19.8m.
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.
The transport and distribution arm still accounts for 90% of Stobart’s revenues, representing sales of £251m, down from £265.9m last time. Pre-tax profits were up 3% to £14.2m as the firm achieved higher margins despite lower market volumes.
The property arm, Stobart Estates, pulled in £9m, up from £3.2m, while infrastructure and civil engineering accounted for £16.2m, down from £27.3m due to delays to developments in Carlisle and Widnes.
Stobart Air increased revenue from £4.2m to £7m but recorded a small loss of £300,000, down from a £200,000 profit last time. The biomass arm saw revenues rise from £2.6m to £6.6m. Profits doubled to £800,000.
During the period the group acquired vehicle transporter business Autologic and secured planning permission for an extension at its London Southend Airport.
Chief executive Andrew Tinkler said: “We have worked hard to improve margins and profitability in our core transport business despite tough trading conditions. We are well underway with delivering the stated plan for the group.”
