Stobart Group Ltd (LON:STOB) has told investors that it is trading in line with its own expectations, as it prepares to hold its annual general meeting later today.
The London-listed logistics group highlighted that it is on track for important milestones in key business areas – namely, it expects to hit a 2.5mln passenger target at London Southend Airport.
Separately, the energy unit the group is targeting 2mln tonnes of biomass supply by the end of the 2018 calendar year.
Stobart is positive about the future, extending longer-term targets and declaring that it is ‘confident’ that the group can continue to deliver shareholder value through to 2022 and beyond.
Rising dividends backed by cash generation
It also highlighted that the business’s cash generation has been boosted by two transactions, which together delivered some £159.7mln - £113mln was realised by the IPO of the separate Eddie Stobart Logistics (and the Stobart Group’s remaining 12.5% shareholding was valued at £71.5mln); and an aeroplane sale-leaseback deal banked a further £46.4mln.
“The board reaffirms its intention to maintain the increased level of quarterly dividend payments to reflect the cash generation of the group,” Stobart said.
Stobart also noted that recently announced corporate changes, which include a management reshuffle alongside the launch of the new Stobart Capital investment unit.
Reshuffle and new investment opportunities
Group chief executive Andrew Tinkler is moving over to steer the new Stobart Capital division and the chief executive role being taken up by Warwick Brady, who was previously deputy CEO and COO for EasyJet.
Brady will be focussing on hitting targets in the Aviation, Energy and Rail businesses, while Tinkler’s Stobart Capital will seek value creation in investment opportunities in sectors where the group has expertise.
“I am looking forward to working with Warwick as the new CEO of the group,” Tinkler said in a statement.
“Approximately 50% of my time will be dedicated to helping support Warwick and the existing businesses as an executive director on the group board.
“In particular, I will be using my experience and skill set to help deliver and realise the value in our Infrastructure and Investments divisions.
“The remainder of my time will be spent in Stobart Capital looking for strategic opportunities to support the strategy of the group and create more value."