Stobart to build on growth opportunities following 34% revenue uplift

Aviation and energy business Stobart Group has announced a ‘strong strategic and operational performance’ in the six months up to August 31.

In interim results published today, the group has seen a 34.1 per cent increase in revenue compared with the same period in the previous year.

The news comes as the group announced passenger numbers at London Southend Airport have increased 41.8 per cent during the six month period to 1.2 million.

The group, which operates entities such as London Southend Airport, Stobart Energy and Stobart Rail & Civils, has announced a suspension of dividends in order to invest in growth opportunities.

Warwick Brady, chief executive officer, Stobart Group, explained: “In London Southend Airport and Stobart Energy, the group has two businesses with immediate and considerable growth opportunities.

“London Southend Airport continues to attract new airlines and is on course to deliver our target of 5 million annual passengers at £8 EBITDA by February 2023. At the same time, Stobart Energy is now set to become increasingly cash generative. Both of these exciting growth businesses require further investment in order to deliver their full potential.

“The board has undertaken an extensive review of the capital required to fund this growth and taken the decision to suspend the dividend in order to maximise the capital available for the further development of these growth businesses.

“We are confident that, with the planned strategic investment, we will deliver superior future returns.”

Want your business, product or service to be seen regionally and nationally? Bdaily helps you get your story in front of the right audience, every day. Find out how Bdaily can help →

Join more than 55,000 subscribers by signing up to our daily bulletin each morning here.