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Stobart Group to return £300mln to shareholders

Andrew Tinkler, chief executive of Stobart Group Ltd (LON:STOB), says the company’s strategy to deliver significant shareholder returns is on track for 2018.

The plan is that aviation, rail and energy will be the growth divisions over the next 2-3 years. “The three operating businesses should be producing good cash generation after 2018 for the next 15 to 20 years,” says Tinkler.  Concurrently the infrastructure investment business that include the properties and the investment in Eddie Stobart and Propius leasing company “will be sold off and £300mln of cash will be returned to shareholders.”

In terms of the maths Stobart investments and infrastructure sit on the balance sheet at £196mln.  Tinkler is confident that “we can do a 25% IRR on them over the next two years.”

2018 is a significant milestone year for Stobart Group as by then Tinkler believes the company will be providing 60% of the waste wood in the UK required for the burgeoning biomass industry.

Quick facts: Stobart Group Ltd

Price: 33 GBX

Market: LSE
Market Cap: £206.23 m

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on 5/11/20

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