Stobart's (STOB) annual results have something missing this year. The logistics company offloaded half its stake in famous haulier Eddie Stobart for £281m after the period-end, and this "pretty complex set of numbers" largely ignores its contribution over the past 12 months. It does, however, appear a sensible deal and provides money to spend on its higher-margin biomass and airport operations.
With Eddie Stobart now relegated to 'discontinued operations', the numbers are certainly lighter. Last year, the division generated £560m of revenue and a pre-tax profit of £21m. Without it, the group lost over £10m - largely due to a £13m impairment charge linked to the sale and £1.9m of restructuring costs. Underlying cash profit was actually flat at £29.4m - and up 6 per cent at £22.6m before central costs. Profit at the biomass business grew by 7 per cent to £4.4m, by 4 per cent at estates to £17.7m and by a quarter at transport to £3.7m. But both Southend Airport and the engineering division made much less.
The £196m in cash received from the sale will be pumped into green energy plants, used to repay loans, and bankroll a £35m share buy-back. In fact, including £73.5m from property sales by the estates division, Stobart has a net cash position.
Given all the changes, brokers are still working on forecasts for 2015.
STOBART (STOB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 133p | MARKET VALUE: | £471m | |
| TOUCH: | 132-135p | 12-MONTH HIGH: | 155p | LOW: 76p |
| DIVIDEND YIELD: | 4.5% | PE RATIO: | na | |
| NET ASSET VALUE: | 130p* | NET DEBT: | 28% | |
| Year to 28 Feb | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 448 | 33.3 | 11.7 | 6 |
| 2011 | 500 | 29.5 | 9.0 | 6 |
| 2012 | 492 | 29.2 | 8.5 | 6 |
| 2013† | 77 | 3.0 | 1.0 | 6 |
| 2014 | 99 | -10.2 | -3.1 | 6 |
| % change | +29 | - | - | - |
Ex-div: 28 May Payment: 4 Jul *Includes intangible assets of £120m, or 34p a share †Restated to classify part sale of transport & distribution business | ||||
