Stobart Group appoints new energy CEO and reports bumper half-year pre-tax profits
UK logistics specialist Stobart Group has seen its half-year pre-tax profits soar by 1700% to £10.8 million, up from £600,000 in the same period last year.
The Group, which also has an energy division, claims it is the number one supplier of biomass in the UK, sourcing and supplying fuel to biomass plants under a mix of short and long-term contracts.
Underlying profits, rose 252% from £4.6 million to £16.2 million for the six months to 31 August, 2016. The Group’s turnover was 13% higher at £63.5 million.
Chief executive Andrew Tinkler said: "Stobart has continued to work towards delivering its clear targets for its three growth divisions; Energy, Aviation and Rail.
“We have appointed Ben Whawell as CEO of the Energy division to make sure we have the right leadership in place to achieve our target of delivering two million tonnes of biomass by 2018. I also look forward to working with Mark Adams as our new CFO whose broad experience will be very valuable as we grow our operating businesses.”
Biomass plant in Scotland
In relation to its energy division, both revenue and volumes supplied in the first half of the year were at a similar level to the same period last year with 469,259 tonnes supplied during the period. Increased volumes on certain contracts, combined with improved margin performance, were offset by a reduction in volume on certain export contracts.
The contract with Speyside Biomass Plant in Scotland commenced during the period with 4,260 tonnes of biomass delivered. In a statement, Stobart said that these volumes were expected to increase significantly during the second half of the year as it ramps up to full operational volumes.
Revenue for this division was £36 million, compared to £35.6 million the same period last year.
In a statement, Stobart said: “We expect the majority of new plants to open on time in 2017, allowing us to deliver our target of 2 million tonnes per annum by 2018. Full-year results for Stobart Energy are expected to be in line with management expectations and the division expects to achieve its strategic target of generating EBITDA of £10 per tonne of biomass fuel supplied during the period.”