Stobart's energy and rail units trading below expectations

Stobart Group said annual results for its energy and rail divisions were likely to be lower than expectations as the owner of Southend airport seeks to recover from a damaging boardroom dispute.

In a trading update on Thursday the FTSE 250 group said delays to third-party energy plants had put pressure on the supply chain and exaggerated the impact of one-off costs.

The rail business has won contracts but a “more prudent approach” to recording revenue means results for the year will be below expectations.

Results at Stobart’s aviation division are expected to be broadly in line with expectations, the company said. Passenger numbers at Southend airport, which serves London, rose 37% in the six months to the end of August as the company stepped up marketing and offered incentives to airlines. The airport has signed a deal for Ryanair to start flying there in 2019.

The company is trying to recover after a dispute in which former chief executive tried to depose chairman Iain Ferguson, triggering legal accusations from both sides. The dispute highlighted wider issues with Stobart’s governance and the group is making efforts to rebuild its board.

Warwick Brady, Stobart’s chief executive, said: "We are reviewing all aspects of the group to ensure we are well placed to deliver the ambitious growth targets set by the board to double the value of the business. We are confident that we can meet our commitment to shareholders to unify the business and provide the framework for the delivery of the company's strategy to the benefit of all stakeholders."

Stobart shares fell 0.8% to 240.5p at 08:12 BST.