Stobart Group expects profits 'in line with management expectations'

The company, which owns Carlisle Airport and holds a minority stake in the Eddie Stobart haulage business, said its infrastructure division had produced a “strong performance” boosting the value of properties.

Stobart announced last month that it had completed a sale and lease back of its new freight distribution centre at Carlisle Airport for £16.9 million.

In a trading update, chief executive Andrew Tinkler said: “We have a stable platform for growth in our energy and aviation divisions, complemented by profitable realisations from our infrastructure portfolio.

“The board is focused on fulfilling the long-term biomass fuel supply agreements that are already in place in the energy division and on attracting new operators and passengers through London Southend Airport over the next two years.

“Achieving these targets will create significant value for shareholders.”

He added: “We have realised net cash of over £24m from asset disposals in the year.

“Cash generation from these assets will assist the group in the payment of dividends whilst the growth divisions mature.

“The board will consider further distributions of surplus cash generated on future asset realisations.”

Stobart’s biomass division is on target to supply more than 2m tonnes of biomass fuel annually by 2017-18 while its aviation wing aims to have 2.5m passengers a year using London Southend Airport by 2018 and is in talks with operators over new routes.

One of these would be a twice-daily service to Carlisle.

Its rail division continues to increase revenues, the company says, and has a strong order book of projects for Network Rail while its stake in Eddie Stobart Logistics “continues to grow in line with expectations”.

Stobart can trace its roots to the 1970s when it began as an offshoot of an agricultural contracting business.

It sold a majority stake in the Eddie Stobart road haulage business two years ago to concentrate on in its other interests.