Stobart issues positive update

Logistics group Stobart said trading is in line with expectations and significantly ahead of this time last year.

In a trading statement prior to the company's interim results on 20 October 2010, Stobart said new contracts in the Eddie Stobart haulage business had lifted performance. Among them, a contract to provide warehousing and distribution for Irn Bru maker AG Barr was worth £7m a year. The full benefit of a contract with Tesco at the new 528,000 sq ft chilled warehouse in Widnes will be felt in the second half of the year.

Stobart Rail is threatened by uncertainty over future Government expenditure and flat demand from Network Rail. Stobart Ports is 'marginally ahead of expectations due to tight cost control with steady volumes but limited growth'.

At London Southend Airport, Stobart Air will complete a new railway station and control tower by the end of 2010. There was no mention of Carlisle Airport, which is still subject to a legal challenge from a local farmer over the planning application for its expansion.

Shares in Stobart were flat at 140p this morning.

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