Diversification to accelerate at Stobart

23rd May 2011 07:13

Stobart Group's revenue topped the half billion pounds mark but underlying profits at the logistics firm eased a tad in a year characterised by a tough operating environment.Revenue from continuing operations in the year to 28 February rose to £500.4m from £447.7m the year before. Market consensus had been for revenue of £489.3m.Underlying earnings before interest, tax, depreciation and amortisation slipped to £57.2m from £57.4m, while underlying profit before tax fell to £34.5m from £36.0m the year before. The market had pencilled in a figure of £32.95m for profit before tax. Reported profit before tax was £29.5m, down from £33.3m a year earlier.Adjusted earnings per share retreated to 9.7p (consensus: 9.12p) from 10.8p the previous year. Net debt increased to £156.1m from £96.8m at the end of February 2010 but was down from £162.0m at the end of August 2010.The final dividend of 4p takes the full year pay-out to 6.0p, a tenth of a penny lower than the market had been expecting, and unchanged from last year."These results are largely due to the ongoing strength of our transport and distribution business, significant new business wins and tight cost control," said Andrew Tinkler, Stobart's chief executive officer. Tinkler added that the figures were in line with management's expectations.The group has announced the formation of two new divisions: Transport & Distribution, and Estates, Air, Biomass and Infrastructure & Civil Engineering. Having recently raised around £115m in new funding, the company will be investing in these new divisions and expects them to generate significant returns."We will be developing the substantial property assets held by the group by building them out and then leasing them advantageously. We will also continue to invest in our transport and distribution business, as well as in air and biomass," pledged Rodney Baker-Bates, the group's chairman. ---jh