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Stobart swings to full-year profit thanks to disposal
Stobart, the owner of Southend Airport, swung to a profit in the year to February following the partial disposal of its investment in Eddie Stobart Logistics.
In the year to 28 February, the group made a pre-tax profit of £100.6m versus a loss of £8m the year before. This included a £123.9m gain from the sale of a stake in Eddie Stobart, in which it retains a 12.5% interest.
Revenue in the year rose to £242m from £129.4m, while underlying earnings before interest, taxes, depreciation and amortisation increased to £135.2m from £34.4m.
Underlying earnings in the energy division were up 18% to £12.8m, while earnings in aviation and rail and civils were up 3500% and 13% to £2.9m and £4.4m, respectively.
Total net debt fell to £36.6m from £120.7m and the company upped its total dividend for the year to 18p from 13.5p in 2017.
Chief executive Warwick Brady said: "It has been a great experience since taking over as CEO of Stobart Group at the last AGM. I have been working closely with the teams to develop and evolve the growth strategy for aviation and energy to create and deliver significant value for shareholders over the next five years, retain talented entrepreneurial people and manage our financial resources.
"I am pleased by the progress made in the energy division, which is now on track to achieve its growth targets, and we are focused on further improving efficiencies and margins. The innovation within rail & civils is impressive, and the team continue to both win external contracts and add significant value throughout the group's operating assets."
At 1000 BST, the shares were down 4% to 237.01p.