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Shares in Stobart Group fall as it suspends dividend

Joanna Bourke
Press image from Stobart

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.

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