Stobart returns £31m to shareholders

STOBART’S sale of its famous logistics division has enabled it to cut debts and return cash to shareholders.

In an interim management statement the Warrington group said it raised £195m from the £280m deal.

It has used £100m to repay a loan in full from M&G Investment Management, paid off £68m of a £75m GE loan, and has channelled £31.1m to shareholders through share purchases. Overall, it has halved its debt to around £130m.

The logistics business is now trading as Eddie Stobart Logistics, a new private company in which the listed business retains a 49% stake. The new company has been backed by Douglas Bay Capital which holds 51%. Douglas Bay, formerly the Laxey Investment Trust, owned logistics group TDG until it was sold to Norbert Dentressangle in 2010.

The Warrington-based group has moved into a number of areas in recent years including flight services, renewable energy, property and law and it now plans to focus on these businesses.

Stobart said: “The group remains confident of delivering growth and good returns for shareholders over the coming years as it continues its strategy of investment, optimisation and realisation.”