A truckload of extra costs and legislative delays cut underlying pre-tax profit at Stobart (STOB) by a fifth during the first half to £13.2m. These were largely one-off charges, however, and the second half promises to be busier for the haulier now that policy issues in the biomass industry are almost resolved and Southend Airport has taken off.
Revenue at Stobart’s core haulage division fell 6 per cent as it dumped lower-margin contracts, but profits here grew slightly to £14.2m, and Autologic will chip in during the second half. Stobart also wants rid of six properties by the year-end - one is sold already and two have exchanged contracts. Flights from Southend are selling fast, too. Over 365,000 passengers have passed through the airport in its first five months - every one is worth around £20 to Stobart. With Aer Lingus and easyJet increasing routes, and Thomson selling package holidays from Southend, Stobart’s target of 2m-2.5m passengers a year by 2015 looks achievable. Big contracts with Helius, Iggesund and Dalkia should give the biomass business a boost in the final quarter, too.
Investec Securities expects adjusted EPS of 8.8p in 2013 (2012: 8.7p).
STOBART (STOB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 114p | MARKET VALUE: | £395m | |
| TOUCH: | 113-114p | 12-MONTH HIGH: | 140p | Low: 104p |
| DIVIDEND YIELD: | 5.3% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 131p* | NET DEBT: | 49% | |
| Half-year to 31 Aug | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 281 | 14.7 | 4.07 | 2.00 |
| 2012 | 278 | 6.63 | 1.74 | 2.00 |
| % change | -1 | -55 | -57 | - |
Ex-div: 7 Nov Payment: 7 Dec *Includes intangible assets of £288.3m, or 83p per share | ||||
