Stobart boosted by £37m property sell off

CUMBRIA-based Stobart Group says sale of land in Liverpool to the Ford Motor Company three months ago has helped its infrastructure division is perform ahead of expectations.

In its pre-close trading statement ahead of its interim results for the six months to August 31 the company said the disposal of its investment property in Speke achieved net proceeds of £37m and a profit of £11.6m.

Stobart also said it anticipated further disposals in line with its plan in the second half of the financial year.

Its energy division is meanwhile are target to supply more than two million tonnes of biomass fuel a year and grow EBITDA to £10 per tonne by 2018.

Long-term customer contracts have been secured to achieve this target, with six biomass plants currently under construction and due to come on-stream before May 2018.

In aviation, Stobart’s aim was to grow passenger numbers at its London Southend Airport to more than 2.5 million a year and deliver £8 EBITDA per passenger by 2018.

The airport’s management team is in advanced talks with a number of low-cost carriers and full service operators keen to take advantage of the airport close proximity to the capital.

In the six months to 31 August 2016, like-for-like passenger numbers were broadly in line with the prior year, with on-time performance and load factors continuing to outperform airline targets.

Stobart chief executive Andrew Tinkler said: “Significant progress has been made in the period, illustrating that we are on track to achieve our objectives.

“A particular highlight is the momentum in the energy division, which we are confident will continue during such an important point in its development and we look forward to delivering the expected growth.

“Within aviation, we are pleased with how the discussions with carriers and operators are progressing and look forward to a positive outcome in the coming period.”