logo-loader
viewStobart Group Ltd

Stobart Group CEO says aviation and energy assets carry ‘significant underlying value’, highlights medium and long-term opportunities

The company has also taken a number of steps to protect its business and cashflow during the coronavirus pandemic

Stobart Group Ltd - Stobart Group CEO says aviation and energy assets carry ‘significant underlying value’, highlights medium and long-term opportunities
London's Southend Airport is one of the company's key assets

Stobart Group Limited (LON:STOB) chief executive Warwick Brady has highlighted “significant underlying value” in the group’s aviation and energy assets as the firm takes steps to safeguard its business during the coronavirus (COVID-19) pandemic.

“There remain significant medium and long-term opportunities to further increase the value of the assets for our stakeholders”, Brady said in a statement on Monday.

READ: Stobart Group says talks to sell minority stake in Southend airport are on hold

"The challenges presented by the rapid spread of the COVID-19 virus have been significant. However, I am immensely proud and humbled by the response of our people to this global crisis. We have acted at pace to put in place steps to safeguard our business in the immediate term, and our people have consistently understood and supported the actions we have taken”, he added.

As part of efforts to protect its liquidity and cashflow, Stobart said it has frozen all capital expenditure apart from areas deemed critical for safety, furloughed around 50% of its staff and agreed a 20% pay reduction for its board and senior leadership alongside a 10% pay decrease for all other non-furloughed management.

The company also instituted a recruitment freeze from early March and deferred all variable pay awards to August at the earliest.

“The cumulative effect of these actions is to preserve the group's liquidity and provide cash headroom. Given the level of current uncertainty, particularly regarding the potential duration of the crisis, the board is also taking prudent steps to explore further funding options”, the company added.

Stobart also said it is not possible to provide financial guidance for the full year at present and its withdrawing all previously made guidance.

The shares were 3.4% higher at 47.6p in early trading on Monday.

Quick facts: Stobart Group Ltd

Price: 31.09 GBX

LSE:STOB
Market: LSE
Market Cap: £194.29 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Stobart Group Ltd named herein, including the promotion by the Company of Stobart Group Ltd in any Content on the Site, the Company receives...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Morning Report: FTSE 100 unsettled by Whitbread rights issue and spike in...

Headlines from the Proactive UK newsroom. The FTSE 100 slipped early unsettled by Whitbread’s rights issue and a spike in coronavirus cases overseas. The index was down 35 at 6,031 early doors. Whitbread is to raise £1bn through a rights issue at 1,500p, a thumping 47% discount to last...

on 21/5/20

2 min read