Aviation takes off for Stobart

THE Stobart Group, which demerged its famous trucking division in March to focus on a raft of other businesses, has been encouraged by the growth of its aviation and energy businesses, despite posting a half-year loss.

The Warrington-based group has moved into a number of areas in recent years including flight services, renewable energy, infrastructure services, property and law.

But it still holds a 49% stake in the logistics arm, trading as Eddie Stobart Logistics but controlled by Douglas Bay Capital. It was formerly the Laxey Investment Trust which owned logistics group TDG until it was sold to Norbert Dentressangle in 2010.

In the six months to the end of August revenue from continuing operations was up 17% to £48.1m which the group said was due to volume increases in its aviation and energy divisions.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 20% to £8.7m. Stobart said this was due to lower investment property realisations and revaluations. It made a pre-tax loss from continuing operations of £8.6m, due to finance charges of £8.1m relating to debt repayments.

Stobart said it was encouraged by the increase in biomass material it supplied, up 56% to 482,000 tonnes. It also saw passenger numbers increase by 19% at its London Southend Airport to over 628,000 passengers in the period.

Chief executive Andrew Tinkler said: “We have a clear focus on the growth of our Energy and Aviation businesses. The increased volumes we are reporting, along with strengthening pipelines in both divisions, reinforce our confidence in the group’s prospects.”