Stobart drives home a three-year plan

30th Jun 2011 13:23

Distribution group Stobart's key transport and distribution business recorded a fall-back in retail market volumes in the last month, reflecting more volatile demand from its retailers, but said it is trading in line with expectations despite challenging market conditions.The company, which had faced fleet utilisation challenges, announced that it has reorganised itself into five main operating divisions and has structured a three-year plan. "Measures including optimising fleet management and other cost improvements are underway to maintain expected levels of profitability," the company said. Stobart said, as expected, its infrastructure and civil engineering unit was hurt by lowered spending by Network Rail. It said its biomass division is on course to delivering its target of supplying between three and four million tonnes per annum to the renewable fuels market. Shares of the FTSE-250 company slid 0.9% to 142p in midday trading.AR