Stobart expects strong second half

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Stobart Group expects a strong performance in the second half as a result of recently announced contracts, new business wins and action taken to reduce costs, the group said in its pre-close trading statement today.

Stobart’s performance in the first six months of the financial year, during a period of consolidation, is in line with management expectations, namely materially level with the second half of the 2008/09 financial year.

Volumes remained strong at Eddie Stobart. Last month it won a contract for the distribution of Tesco’s non-food goods from Teesport. The chilled business continued to secure new contracts with opportunities for significant new business in the coming months.

“The integration of this fleet is ongoing and the chilled business has contributed to the Group for the first time in the first six months of this year. In addition to revenue improvements, management continues to focus on cost reduction and efficiencies.”

There is ongoing focus on new services by rail, including the launch of a temperature-controlled intermodal service from Valencia to the UK.

A 528,000 sq ft chilled warehouse at Stobart’s inland port at Widnes is expected to be operational by the end of the calendar year and the group plans to start the construction of a new distribution centre at Carlisle Airport and commence development of the new railway station at Southend Airport.

“The Board remains confident that the group will continue to prosper and deliver its strategy to become the UK’s leading provider of multimodal logistic solutions.”

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