Stobart Group Current Trading In Line With Expectations

18th Jun 2010 11:26

LONDON (Dow Jones)--Stobart Group (STOB.LN), a provider of multimodal transport logistics solutions, announced Friday for the period from March 1 to date, it has made a solid start to the year and is trading in line with expectations. MAIN FACTS: -During the first quarter, volumes have shown less volatility than the corresponding period in 2009. -However, despite the economic climate starting to show recovery, market conditions remain challenging. -The performance of the business is ahead of the same period last year, helped by the start of new and enhanced contracts, including chilled volume with Tesco PLC (TSCO.LN) from their new distribution centre adjacent to our Inland Port in Widnes and a 10 year contract for the movement of wood product with A. W. Jenkinson. -In March the company diversified into supply chain management and control through a joint venture in Stobart Biomass Products, alongside the U.K. biomass market leader A.W. Jenkinson. -This new company sources and distributes biomass fuel to the U.K. renewable energy market. -Visibility of orders has improved over the past two months with further viable projects identified. -At the start of June, it secured its long term funding position through the GBP100 million, 10 year term loan from M&G. -This loan has partly been used to repay existing bank debt but, more importantly, will fund key capital projects across the Group, the first of which will be the further enhancement of London Southend Airport following ministerial consent for the runway extension in March. -Shares at 1023 GMT down 0.5 pence, or 0.3%, at 147.5 pence. -By Zechariah Hemans, Dow Jones Newswires; 44-20-7842-9411; [email protected] (END) Dow Jones Newswires June 18, 2010 06:26 ET (10:26 GMT)