Biomass and air passengers lift Stobart despite losses

Rising biomass tonnages and more passengers at Southend Airport have boosted transport group Stobart.

Stobart, famous for its green and red lorries and smartly-dressed drivers, said biomass volumes rose 56% to 482,000 tonnes and passenger numbers at the Essex airport, which it owns, lifted 19% to more than 628,000 in the six months to the end of August.

Revenue from continuing operations increased 17% to £56.2m against £48.1m a year ago due to the volume increases in aviation and energy.

Underlying pre-tax earnings before interest, depreciation and amortisation fell 20% to £8.7m due to lower investment property realisations and revaluations.

But underlying pre-tax profits rose 110% to £4.4m thanks to an 80% fall in interest charges.

The group made a pre-tax loss from continuing operations of £8.6m against a profit of £1.2m last time due mainly to £8.1m separately disclosed finance charges related to debt repayment.

The group has sold a majority stake in its trucking business and now counts it as an investment.

Chief executive Andrew Tinkler said: "We have a clear focus on the growth of our energy and aviation businesses. The increased volumes we are reporting, along with strengthening pipelines in both divisions, reinforce our confidence in the group's prospects."

Shares rose 1p or 1% to 100p at 09:20 in London.