Stobart on target with profits and turnover

Stobart said it expects to meet its year end pre-tax profit expectations and deliver further value from its substantial asset base.

Within an interim management statement released today, covering the period since 22 October last year, Stobart said it was finalising the integrations of its acquired businesses and restructuring certain divisions.

The Carlisle and Warrington based company owns 3MG, its multi-modal container handling facility near Widnes, and Carlisle Airport, which it plans to expand.

Stobart said the foundations of the multi-modal strategy are in place to provide growth over the coming year.

In addition, the group said it is committed to developing its assets in the ports and airports division to improve returns to shareholders. Stobart also expects to realise the value and profit in certain existing assets with the consequential benefit to the balance sheet and a significantly reduced net debt figure at the year end.

Stobart also said in its interim management statement:

• Road transport and warehousing operations experienced reasonably static revenues compared to the prior year with new business secured for growth during the next financial year
• Port operations have remained steady during the financial year and although like-for-like revenue was slightly lower the profit before tax is expected to show a significant improvement
• Rail civil engineering operations are performing above expectations, with a good mixture of profitable rail and engineering contracts delivered during the year. Overall, it expected that rail will be significantly ahead of the prior year
• The development of the Carlisle Airport Group distribution centre will commence in spring of this year and the airport operations are in line with management expectations
• Southend Airport received a recommendation for approval of the runway extension planning application from the local councils on Wednesday 20 January. It hoped for a quick decision to enable completion of the construction of the airport to service the 2012 London Olympics. A new airport railway station is under construction and is expected to open in early summer

Stobart said it will announce its full year results, for the year ended 28 February 2010 on Wednesday 12 May.