Stobart hits a few bumps

26th Aug 2011 07:26

Transport logistics firm Stobart Group said its transport and distribution division is back on the right track in August after a difficult period in June and July,The division is seeing shorter lead times, significant fluctuations in volume caused by promotions and increasingly inaccurate customer forecasting, and these changes culminated in a rocky few weeks, but August trading has improved materially and the board expects a stronger second half to the financial year from this unit.The Estates division has finalised the planning and initiated the marketing for Stobart's multimodal site in Widnes. Other commercial and industrial property opportunities are being considered and further value has been generated in existing investment properties.External work remains slow in the Infrastructure and Civil Engineering unit, but internal developments are progressing well, the company said. The Southend airport project remains on target to meet the development milestones required for the launch of the new runway in 2012. The biomass fuel supply division has traded over 200,000 tonnes of product during the last six months with significant export volume into Scandinavia. Volumes are expected to double in the second half, delivering strong profit growth during the period.Overall, the group said it expects first-half pre-tax profits will be ahead of last year. --jh