Aviation, energy and rail group Stobart Group (STOB) saw underlying cash profits (Ebitda) rocket up by almost 50 per cent in the year to 29 February, reaching £16m. This came as all but one of the renewable energy plants to which it supplies biomass completed commissioning, thereby increasing demand for fuel.
However, its statutory pre-tax loss more than tripled to £158m thanks to £102m of impairment charges. This includes a £45m write-down of loans to Connect Airways – parent company of Flybe – which has entered administration. A further £20m impairment came as it sold the ‘Eddie Stobart’ and ‘Stobart’ brands to logistics group Eddie Stobart (ESL).
Alongside an upcoming name change, Stobart is also looking to change direction and focus more on aviation, specifically London Southend Airport. It plans to exit its loss-making rail and civil engineering operations this year and tap infrastructure investors to unlock value from its energy division over the next two years.
Net debt (excluding lease liabilities) almost doubled to £159m last year and Covid-19 pressures saw the group draw the remainder of its £80m revolving credit facility (RCF) post-period. Requiring additional funds, it undertook a heavily discounted placing after these results were released, raising gross proceeds of £80m. A further £20m is set to come from an open offer. This has allowed it to unlock a new £40m RCF, although the cost of borrowing has increased.
| STOBART (STOB) | ||||
| ORD PRICE: | 48p | MARKET VALUE: | £ 178bn | |
| TOUCH: | 48.0-48.1p | 12-MONTH HIGH: | 145p | LOW: 29p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 28p* | NET DEBT: | £235m** | |
| Year to 29 Feb | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 127 | 10.0 | 2.7 | 6.0 |
| 2017 | 129 | -8.0 | -2.7 | 13.5 |
| 2018 | 105 | 109 | 31.4 | 18.0 |
| 2019 | 147 | -42.1 | -12.2 | 9.0 |
| 2020 | 170 | -158 | -40.6 | nil |
| % change | +16 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes £55m in intangible assets or 15p a share, **Includes £76m in lease liabilities | ||||
