Stobart appoints new chair as ‘solid progress’ continues
LOGISTICS group Stobart has reported “solid progress” in the first half of its financial year, as it moves from its investment phase into value optimisation, and appointed ex-Tate & Lyle chief executive Iain Ferguson as its chairman.
The Warrington-based group has moved into a number of areas, alongside its traditional logistics business, including flight services, renewable energy, property and law. But transport and distribution still account for 90% of revenues.
In its half year pre-close trading statement the group said that despite swings in retail sales volumes due to the poor spring weather followed by very hot periods in June and July, the transport and distribution division will achieve solid results as a result of investment in planning systems to meet customers.
Stobart has also started to implement the division’s systems in its Autologic subsidiary, which it said will enhance profitability over the coming twelve months.
In July the Estates division completed the disposal of its property at Appleton Thorn at a profit and discussions are on-going in relation to other potential disposals, it added.
In the Air division the terminal extension at London Southend Airport is almost complete and will be fully commissioned by the end of this year. The addition of a fourth easyJet aircraft based at the airport is improving EBITDA and operational cash flow.
Andrew Tinkler, chief executive of the Stobart Group, said: “As stated in our annual results, we are now moving the business from investment phase into its value optimisation stage and we are making steady progress in this transition, in line with our four-year strategy. The management team is focused on delivering value to shareholders and we will continue to work on achieving the potential of each of our divisions.”
Mr Ferguson, who will take over as chairman from October, is chairman of Berendsen and a non-executive director on the boards of Balfour Beatty and Gregg’s. He was chief executive of sugar manufacturer Tate & Lyle from May 2003 until the end of 2009 having previously been with Unilever for 26 years following graduation from St Andrews University.
He is also is chairman of Wilton Park (FCO Agency), the lead non-Executive Director for Defra, a member of the Better Regulation Strategy Group (BIS) and the Honorary Vice-President of the British Nutrition Foundation.
Mr Ferguson said: “I am delighted to be joining Stobart at a key point in its development. With its industry-leading Transport and Distribution business and its newer, fast growing Biomass and London Southend Airport businesses the group has a fascinating portfolio. I will enjoy working with Andrew Tinkler and his highly committed team and recruiting new directors to the board in order to deliver value for shareholders from all of the group’s businesses.”
