Stobart Group to focus on energy and aviation

27-Aug-2015 - Last updated on 28-Aug-2015 at 15:29 GMT

Eddie Stobart Logistics was said to be trading ahead of the previous year

Diversified transport business the Stobart Group is to continue its focus on the high-value areas of energy and aviation, said the firm’s boss in a pre-close trading statement.

The firm was on course to supply more than 2Mt of biomass fuel each year by 2017/18, said chief executive Andrew Tinkler.

Current demand is for 1.2Mt and long-term contracts have been secured to supply an extra 1Mt from 2017/18. The additional production will be delivered from new plants, which are currently under construction.

The biomass supplied in the five months to July 31 2015 was similar the level achieved in the same period last year. That was despite temporary power plant shutdowns, due to unscheduled maintenance, and significant operational problems caused by the well-publicised delays at Eurotunnel, due to the combined effects of striking French ferry workers and migrants trying to reach the UK.

The group’s rail division was said to be achieving good margins and had “a healthy pipeline” for the rest of the year.

Margin per tonne

Margin per tonne was said to be significantly ahead of last year, as the business benefitted from an increase in volumes supplied to long-term contracted UK customers and greater production efficiencies achieved from its sites.

The Stobart boss said: “We have continued to focus primarily on delivering value in our two high-growth divisions, energy and aviation, and we continue to build the infrastructure and relationships to meet our targets in these markets.

“I am also pleased with the promising new contract wins in Stobart Rail.”

New distribution centre

The Infrastructure division is expected to complete the development of a new distribution centre at its site at Carlisle Lake District Airport on time in September 2015. It had also completed the disposal of the Worcester property in March 2015, realising £6.2M.

Eddie Stobart Logistics was claimed to be trading ahead of the previous year.

Meanwhile, the group’s aviation business was on course to achieve more than 2.5M passengers within three years, the business claimed.

“Stobart Group’s growing relationship with easyJet, coupled with discussions with other low cost airlines, gives us confidence we will be well placed to announce new routes and achieve our target of welcoming 2.5M passengers to London Southend Airport annually by 2018,” according to the statement.

The group will post interim results for the six months to August 31 on October 22 2015.

The boss’s view

“We have continued to focus primarily on delivering value in our two high-growth divisions, energy and aviation, and we continue to build the infrastructure and relationships to meet our targets in these markets.”