Transport logistics giant Stobart Group delivered an upbeat interim management statement today at its AGM today for the period from 1 March 2010 to date.
The statement said the company made a "solid start" to the year and is trading in line with expectations. Volumes are less volatile but market conditions remain challenging, Stobart said.
The statement went on: "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 from their new distribution centre adjacent to our Inland Port in Widnes and a 10 year contract for the movement of wood product with AW Jenkinson.
"In March we diversified into supply chain management and control through a joint venture in Stobart Biomass Products, alongside the UK biomass market leader AW Jenkinson. This new company sources and distributes biomass fuel to the UK renewable energy market. Visibility of orders has improved over the past two months with further viable projects identified."
Earlier this month, the company announced a £100m, 10-year loan from M&G. Stobart Group expects to announce its results for the six months to 31 August 2010 on 20 October 2010.