A goodwill impairment from the acquisition of of Everdeal Holdings pushed Stobart Group's (STOB) pre-tax profit deep into the red, but strip out these non-cash charges and underlying profits came in at a healthy £27.4m, up 49 per cent on the previous year. Cash generated from the post period-end IPO of Eddie Stobart Logistics (ESL) along with receipts from the sale of aircraft and infrastructure assets will be used to double the dividend. Happily, the value of the group's residual 49 per cent stake in the spin-off is significantly in advance of the year-end carry.
Stobart founder and chief executive Andrew Tinkler will step down in June, replaced by former easyJet (EZJ) chief operating officer Warwick Brady. But Mr Tinkler will stay on as an executive board member and will head Stobart Capital. The new private equity-like entity will buy struggling businesses or start-ups and turn them around, then either incorporate them into Stobart or sell. Management felt that it was best to keep Stobart Capital as independent from the group, arguing that it is easier to overhaul companies outside of the public eye, and off the balance sheet.
Analysts at Cenkos expect adjusted pre-tax profits of £25.4m for the February 2018 year-end with EPS of 5.6p, against £27.4m and 8p in 2017.
| STOBART GROUP (STOB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 232p | MARKET VALUE: | £ 822m | |
| TOUCH: | 231.25-233p | 12-MONTH HIGH: | 234p | LOW: 105p |
| DIVIDEND YIELD: | 5.8% | PE RATIO: | na | |
| NET ASSET VALUE: | 109p | NET DEBT: | 31% | |
| Year to 28 February | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 † | 77.0 | 3.0 | 1.0 | 6.0 |
| 2014 | 99.0 | -10.2 | -3.1 | 6.0 |
| 2015 | 117 | -9.4 | -2.4 | 6.0 |
| 2016 | 127 | 10.0 | 2.7 | 6.0 |
| 2017 | 129 | -8.0 | -2.7 | 13.5 |
| % change | +2 | - | - | +125 |
Ex-div:15 Jun Payment:07 Jul *Includes intangible assets of £108m, or 31p a share. †Restated to classify part sale of transport and distribution business | ||||
