Stobart makes air and biomass progress as FY profits rise

21st May 2014 08:57

Transport and energy company Stobart Group hailed progress in its growing air and energy businesses as it reported a 6.1 per cent rise in annual profits.Stobart, traditionally known for its road haulage operation, said its aviation division was expanding as its London Southend Airport business increased passenger numbers by 38% to more than one million during the year.Its biomass arm increased tonnage handled by 41% to more than 900,000 tonnes and began some major new long-term contracts, although initial commissioning issues delayed expected profit rises.The group's infrastructure and civil engineering business increased revenue from external projects by 40% with an improving order book.The road haulage and distribution operation, in which Stobart now has a 49% stake following a sale of the other 51% last month to funds managed by DBay Advisors, had a "consistent" year with revenue from most business units matching budget targets and new business secured.Underlying pre-tax earnings from continuing operations in the year to February 28th rose 6.1% to £22.6m from £21.3m on a 29.2% rise in revenue to £99.2m.Chief Executive Andrew Tinkler said: "Our strategy is now well set as an infrastructure and support services group. With capital to invest and our executive team focused on our growth businesses in energy and aviation, we are well placed for good returns."Shares fell 2.5p or 1.8% to 133p by 09:49 in London.PW