STOBART: More than just truckin'

7th Aug '09 by StrollingMolby

12 comments 5817 reads

A thread for general discussion of the company and developments that affect it.

Stobart Group is a multi-modal transportation group that provides road, rail, sea and air transport and logistics solutions to its customers. Core to its strategy is reducing waste through providing efficient and environmentally friendly solutions for moving, handling and storing goods.

Divisions consist of:

Eddie Stobart - Road haulage, consisting of General Distribution, Specialist Transportation, Chilled Distribution, International and Warehousing.
Stobart Ports - Inland Ports and Waterways Ports.
Stobart Rail - Infrastructure Engineering and Freight Transportation.
Stobart Air - Southend and Carlisle airports were acquired during 2008/09 to provide air capability.

http://www.stobartgroup.co.uk/

Intermodal Factsheet issued by the Intermodal Association of North America

(More to follow)

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StrollingMolby

7th Aug '09

An announcement just made of two directors selling £5m of stock, or 2% of the company, at £1 so perhaps at 5/6% discount. Would be interesting to know whether it is to satisfy institutional demand or for other reasons.

http://www.investegate.co.uk/Article.aspx?id=200908071551201130X

21st Aug '09

Impressive trading update today from Stobart, in terms of progress reported and outlook, as well as depth of information provided.

Stobart's performance in the first six months of the financial year, during a period of consolidation, is in line with management expectations, namely materially level with the second half of the 2008/09 financial year. We expect a strong performance in the second half as a result of recently announced contracts, new business wins and action taken to reduce costs. The Board accordingly has confidence for the full year.

http://www.investegate.co.uk/Article.aspx?id=200908210700037929X

Stobart will announce its half year results, for the period ended 31 August 2009 on Thursday 22 October 2009.

marben100

27th Aug '09

Edison have new note out, in response to the trading update: http://www.edisoninvestmentresearch.co.uk/?ACT=18&ID=2173

23rd Sep '09

Some odds and sods from the ADVFN STOB thread.

Runway plan imminent for Southend Airport - STOB acquired Southend Airport in Dec-08 and intends to lengthen the runway to increase freight and passenger traffic, as well as building a rail station to whizz people to London.

Pochins to build a chilled distribution centre for Stobart in Widnes - not previously announced by company as far as I can see, though mention was made of the acquisition of Innovate Logistics in 2009 annual report, and closure of three other chilled sites.

Pochins - Description of Work - PDF of work required at Widnes site (dated March 09), with contract value of £22.5m.

Lindsay Clark

29th Sep '09

I edit for www.roadtransport.com ... A couple of weeks ago, we confirmed a story you can read here http://www.runcornandwidnesweeklynews.co.uk/runcorn-widnes-news/runcorn-widnes-local-news/2009/09/03/stobart-finishes-chilled-warehouse-in-widnes-as-part-of-3mg-project-55368-24590103/ and published it on our site. Despite the fact we'd confirmed it with Stobart Ports, Stobart Group went ballistic and insisted we pull the story. We did so on the promise we'd get the inside track when they were able to talk about it. But why they were so worried abotu it and if they've got customers lined up for this facility. Any views, pointers?

Welcome to the site, Lindsay.

Stobart Group's reaction was a strange one to your site's publishing of news confirmed by the subsidiary company and subsequently elsewhere. Was there a particular aspect of the story that they wished you to remove? An awful lot of planning has gone into the whole Mersey Multimodal Gateway (3MG) so you'd have thought they would be keen to promote the site and capabilities.

Could it be related to the site contamination or the arson perhaps? On that second point what was it that burnt down and what has been built in its place? Was anyone charged with the arson? Was there an insurance payout?

Also from the article you link to, one hopes Stobart & 3MG have more security in place than just relying on the fact the site is 'busy' !

21st Oct '09

Ahead of STOB's interim results tomorrow, here is a short Buy note on the company from Share Crazy FWIW:

http://sharecrazy.com/beta/Tips/2701/buy-stobart-group-at-122625p

Conclusion:
"Although some commentators have voiced disappointment that trading is flat on H2 2008/09, it is worth bearing in mind that the period under review was a time of consolidation for the company. In any case, investors can look forward to a better second half, which should take profits for the year to February 2010 to GBP28.2 million, giving earnings per share of 8.1p. These forecasts imply a current rating of 15.3 which we believe is worth paying for a company that has an excellent opportunity to consolidate and even re-define the UK logistics industry. Moreover, a historic dividend of 6p, which should at very least be maintained this year, provides a very attractive 5.3% yield. BUY."

In other news, a Cumbrian farmer's legal fight to stop Carlisle Airport being expanded has been dismissed, meaning the multi-million pound redevelopment can now go-ahead.

http://www.newsandstar.co.uk/news/farmer_loses_carlisle_airport_expansion_legal_fight?referrerPath=home/news_star_search_results_page_2_1962

STOB bought Carlisle airport in May/June and intends to consolidate its existing operations in the Carlisle area at the 460 acre airport site, and use the land to develop a new cross-dock facility. It also offers the Group the opportunity to provide air freight solutions, as well as the potential to develop passenger aviation. The Group is currently evaluating how Carlisle Airport can work together and share best practice with its other airport, London Southend Airport.

SM

22nd Oct '09

Solid interims from STOB this morning, though perhaps the market was already pricing this in with the recent run-up in price? Possible buying opportunity if it slips back now.

Financial Highlights

Revenue from continuing operations of £218.2m (2008: £199.2m)
Earnings after fleet financing costs (EAFFC) of £13.5m* (2008: £13.4m)
Profit before tax and restructuring costs of £12.4m (2008: £11.0m)
Earnings per share from continuing operations (normalised before restructuring costs and allowing for a 28% tax charge) totalling 3.7p (2008 like for like basis: 3.7p)
Interim dividend of 2p per share
Net cash generated from operations of £19.7m (2008: £11.0m)

Operational Highlights

Announcement of the launch of a new temperature-controlled intermodal service from Valencia to the UK in partnership with DB Schenker
Completion of integration of James Irlam fleet business in to Eddie Stobart
Announcement of a new £25m per annum contract for Tesco non-food at Teesport
Restructuring of the chilled operation bringing this division to profitability
Opening of a refurbished warehousing facility in Bardon, Leicestershire contracted with Nestlé UK Ltd and worth approximately £11m per annum
Completion of 528,000 sq. ft. chilled distribution centre Phase 1 development at the inland port at Widnes by Stobart Rail
Acquisition of Carlisle Lake District airport for £10.1m on 30 May 2009
London Southend Airport has agreed commercial terms with DfT for development of the railway station

Outlook

Andrew Tinkler, Chief Executive, comments:

"Our half-year results demonstrate stability and performance against a background of economic recession. Volumes are strengthening with new contracts recently signed with Tesco, Nestlé and the launch of new rail services such as the distribution from Valencia to the UK of temperature-controlled fresh produce. We also announce today a further contract award from Tesco in Donabate, Ireland. The civil engineering business continues to win new contracts and add value on the Group's capital projects at the two airports and the Widnes inland port.

We expect a strong performance in the second half focusing on organic growth via new business wins and action already taken to reduce costs with the completion of the integration of Eddie Stobart and James Irlam. The Group is offering a full circle of service provision to customers who are increasingly looking to exit inflexible fixed price contracts and work in mutual partnership to deliver efficient, green multimodal logistics solutions."

http://www.investegate.co.uk/article.aspx?id=200910220700121956B&fe=1

SM

23rd Oct '09

Hi Stobart fans! Are there any here?

Edison have issued an 8-pager following STOB's interims. Got to chuckle at the commentary in this paid-for research:

A period of consolidation in H1 after many strategic moves and the weakness in the UK economy is not unexpected. However, we are encouraged by the number of new contracts won recently, which augur well for a strong H2 performance. Although the comparative valuation is not cheap, a premium for this business model is deserved.

4th Nov '09

The following article is an excellent find by boonboon on ADVFN on the merits of intermodal transportation:

http://www.glgroup.com/News/The-Secret-Formula-JB-Hunt-Transport-Doesnt-Want-You-to-Know-44571.html

There are more than a few of us out here in the trucking world who have begun to believe that the past and still present “operating model” of traditional trucking companies is really quite broken, and cries out not just for repair, but rather for dramatic redesign. JBHT’s “Secret Formula” should be considered an important ingredient in that redesign and remedy. Just last week, for example, a fine United Kingdom-based trucking and Intermodal company, Eddie Stobart (LSE: STOB) announced its inauguration of weekly container train service from Spain to London, via the English Channel Tunnel, boasting that “one train can take over 30 truck loads.” Stobart expects the new Intermodal service will soon replace more than 100 trucks each day that traffic the roadways and Tunnel separating Spain and the UK.

The facts are that here, and in many other countries around the world, Intermodal’s marriage of truckers and railroaders is saving money for shippers, measurably reducing our consumption of diesel fuel, shrinking our carbon footprints, enhancing profits for the asset-based truck and rail participants, and creating many other benefits.

12th Nov '09

A few snippets:

Announced this morning was this contract win from Unilever:

Under the new three year contract, which creates GBP60 million of extra business, Eddie Stobart will undertake customer deliveries from several Unilever UK distribution centres. In addition, Eddie Stobart will also undertake deliveries into those distribution centres from Unilever's UK manufacturing plants.

Also, last week a PDMR doubled his holding by purchasing another 20,000 at £1.24.

And lastly, CEO Andrew Tinkler pledged 7.3m of his 30.5m shares to a loan provider last month (as did COO William Stobart with 2.7m of his 11.1m shares). Two days later this news story appeared, with Tinkler increasing his racehorse ownership by spending 400,000 guineas (£381k) on Sir Mark Prescott-trained Royal Diamond.

SM

11th May '13

I've not followed STOB for a year or more, but what on earth is the company doing branching out into criminal legal aid contracts (through Stobart Barristers), whereby defendents on legal aid will not be able to choose their own solicitor?

(and why is a division of a haulage firm even able to bid for the tender?)

As I say, I've not paid too much attention (STOB had four divisions when I followed it - now seems to have 24!) so maybe the Stobart Brands business is a useful contributor to revenue and profits...

http://www.legalfutures.co.uk/latest-news/stobart-barristers-sets-sights-criminal-legal-aid-contract

http://www.guardian.co.uk/law/2013/may/08/eddie-stobart-legal-aid

(I hear Tesco are bidding too - maybe I should pop over to the TSCO board...)

STOBART: More than just truckin'

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StrollingMolby

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