LONDON (Alliance News) - Stobart Group Ltd said Thursday it has swung to a profit for its recently ended year on strong revenue growth and an investment disposal.
Stobart Group's pretax profit for its year to February was GBP100.6 million, compared to a GBP8.0 million loss in its previous financial year. Revenue was up 87% to GBP242.0 million from GBP129.4 million the year before.
The infrastructure and support services business had underlying earnings before interest, tax, depreciation and amortisation of GBP135.2 million, a fourfold increase from GBP34.4 million the previous year.
The company's made a profit of GBP123.9m following the sale of its 49% interest in the parent of Eddie Stobart, Greenwhitestar Holding Company 1 Ltd.
Its Energy division improved underlying profitability driven by, according to Stobart, "tight cost control and better margin supplies into new plants as planned".
During the year, GBP58.1m was returned to shareholders through dividends. Stobart Group is proposing a final dividend of 4.50 pence per share, the same as last year, but the total dividend for the year is 18.00p, up from 13.50p last year.
Looking forward, the company wants to attract more customers to London Southend Airport - which saw a 29% increase in passenger numbers in 2017. Stobart Air had a 9% increase in passenger numbers due to a franchise and commercial agreement with Aer Lingus and Flybe. More routes are planned for May with Air Malta.
Stobart Aviation Services experienced growth with the securing of a new contract to provide ground handling services to easyJet at London Stansted. The company will also begin passenger flights from Carlisle Lake District Airport.
Chief Executive Warwick Brady said: "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.
Shares in Stobart were down 5.2% to 234.26 pence each Thursday.
