New contract wins add fizz to Stobart Group

NORTH West transport giant Stobart Group said it is trading “significantly ahead” of last year and in line with expectations.

The road and rail transport group, which also operates an inland port at Widnes and two small airports, will announce its half year results in late October.

In a pre-close trading update it said it expects continued growth in the second half of the year as new contracts start to deliver, against a “challenging” economic backdrop.

Volumes in road haulage division Eddie Stobart remain strong, the company said.
A new contract for transport and warehousing from Irn Bru maker AG Barr, worth £7m a year has recently been won.,

Despite what was described as “increased volume volatility”, which has posed some challenges, Eddie Stobart’s trade is in line with expectations and well up on last year.

“The full effect of the previously announced A W Jenkinson and Tesco Widnes chilled contracts will add growth in the second half,” the Carlisle and Warrington-based firm said.

The picture is not quite as rosy in the rail freight division, where overall performance is slightly below expectations due to flat performance in the company’s rail engineering services unit, caused by uncertainty over future Government spending.

Trading at Stobart Biomass Products, which was acquired earlier in the year, is in line with expectations.

Stobart Ports is marginally ahead of expectations due to tight cost control with steady volumes but limited growth, the company said.
“After a successful marketing day, management are pursuing opportunities to further develop the remaining 95 acres of land at the inland port,” the firm added.

At Stobart Air, which is developing an airport in Southend, a new railway station and control tower remain on target to be virtually completed by the end of this year.