Shares in Stobart Group (STOB) climbed 4 per cent after news broke that it has hit its target to double its annual biomass supply to 2m tonnes by 2018. The transport specialist has just inked a fourth major contract in as many months, this time to supply Tilbury Green Power with 270,000 tonnes of waste wood a year for its new plant in Essex.
Like the three other recently penned deals, this latest one is due to commence in early 2017 and cements the group’s goal to secure predictable revenues by transporting old timber to biomass power stations. With these four major wins on board, visibility is strong. According to broker Cenkos, there could be many more contracts as the group consolidates its position as a market leader and continues to capitalise on its scale economies.
