Investors ditched Stobart Group on Thursday, unimpressed by the Southend Airport owner’s decision to suspend the dividend.
The logistics firm gave the dividend update alongside posting a loss of £20.9 million for the six months to August 31. That was deeper than the previous £17.5 million loss.
Chief executive Warwick Brady said Stobart’s aviation and energy divisions have “immediate and considerable growth opportunities”.
The dividend money will be used on expansion. Plans include a new hotel and upgraded check-in systems at Southend where Flybe’s new owners are opening a base for the airline which is rebranded as Virgin Connect. Funding will also come from selling off land and property.
Cantor Fitzgerald analyst Robin Byde said: “Although probably disappointing for some investors, we view this as sensible.”
Brady said: “We are confident that, with the planned strategic investment, we will deliver superior future returns.”
The shares fell 5.9p to 117p.
The company said revenue leapt 34.1% to £93.1 million.