REG - Stobart Group Ltd - Full-year results <Origin Href="QuoteRef">III.L</Origin> <Origin Href="QuoteRef">STOB.L</Origin> - Part 1

3iAnnouncement

15/07/2015 17:33

RNS Number : 1313N
Stobart Group Limited
14 May 2015
14 May 2015
Stobart Group Limited
("Stobart" or the "Group")
Results for the year ended 28 February 2015
Stobart Group Limited, the Support Services and Infrastructure Group, today announces its results for the year ended 28 February 2015.
Group overview
Stobart Group is an entrepreneurial company applying its recognised logistics and customer service expertise to create:
 The UK's number one supplier of waste wood biomass fuel to renewable energy plants
 A major new London Airport in Southend
 A leading civil engineering provider to Network Rail
 A diverse portfolio of investments and infrastructure and property assets
Operational highlights 

 Increased volume of biomass tonnages supplied by 29% to 1.17 million tonnes
 In the last quarter Stobart secured four major long-term customer contracts to deliver an additional 1 million tonnes of biomass from March 2017
 Passenger numbers at London Southend Airport increased by 9% to 1.09m passengers.
 Planning permission secured and construction underway for air/road freight distribution centre at Carlisle Lake District Airport
 Completion of partial disposal of the Transport and Distribution business in April 2014 for 195.6m
 Continued with stated strategy by realising good value from mature assets during the year, generating 27.2m cash
Financial highlights
 Revenue from continuing operations up 17.6% to 116.6m (2014: 99.2m)
 Underlying EBITDA 17.7m (2014: 22.6m)
 Operating cash flow 5.8m (2014: 7.8m)
 Net debt reduced by over 85% to 19.1m with a gearing ratio of 4.7%
 Basic earnings per share from underlying continuing operations of 2.6p (2014: 0.6p)
 Proposed final dividend of 4.0p per ordinary share (2014: 4.0p)
 34.8m returned to shareholders through share buyback programme
 Combined with dividend payments, Stobart returned 54.6m to shareholders in the year
Chief Executive Andrew Tinkler commented:
"We have made good progress with the implementation of the final stage of Stobart Group's growth and value creation strategy. We have focused primarily on delivering value in our two high growth divisions of Energy and Aviation.
In addition, we have driven external projects in our Rail divisions whilst helping develop less mature internal infrastructure assets. Our Infrastructure division has also continued to realise value for our mature property assets."
FULL YEAR RESULTS SUMMARY


28 February 2015
'm
28 February
2014
'm




Revenue from continuing operations

116.6
99.2
Underlying EBITDA

17.7
22.6
Underlying profit before tax

9.3
5.4
Loss before tax from continuing operations

(9.4)
(10.2)
Profit from discontinued operation (net of tax)

6.8
21.9
Divisional underlying profit summary

28 February 2015
28 February
2014

'm
'm
Underlying divisional EBITDA*


Energy
7.8
7.4
Aviation
1.4
0.1
Rail
2.8
3.5
Investments
6.8
0.1
Total for support services divisions
18.8
11.1
Infrastructure
4.0
18.9
Central costs and eliminations
(5.1)
(7.4)
Underlying EBITDA*
17.7
22.6
Depreciation
(6.7)
(5.7)
Underlying finance costs (net)
(1.7)
(11.5)
Underlying profit before tax
9.3
5.4
Non-underlying items
(18.7)
(15.6)
Loss before tax from continuing operations
(9.4)
(10.2)
Tax
1.4
(0.4)
Discontinued operations
6.8
21.9
(Loss) / profit for the year
(1.2)
11.3
* Underlying divisional EBITDA is measured before internal rents.


Enquiries:
Stobart Group
+44 207 851 9090
Andrew Tinkler, Chief Executive Officer 
Ben Whawell, Chief Financial Officer

Redleaf PR
+44 207 382 4730
Emma Kane
Charlie Geller
Stobart@redleafpr.com


Influence Associates
+44 207 287 9610
Stuart Dyble
James Andrew



Chairman's Statement
In my first report as Chairman in 2013/14, I outlined the value created by the Group from selling 51% of its interest in the Transport and Distribution business. In the 12 months following this transaction we have been focused on creating a platform to secure long-term growth, with particular attention on our Energy and Aviation businesses. We believe we now have the right structure and people in place to deliver on our strategic objectives.
Stobart is a people orientated, forward-looking Group, with an entrepreneurial spirit and strong heritage at the heart of the business. The Stobart brand has a very strong identity and has been built on our renowned logistics skills, relentless attention to detail, consistent customer focus and efficient operations. It is through further utilising our core expertise that we will drive the Stobart business and brand forward into the future.
It has been another encouraging year of strong performance and we remain on track to deliver our strategic targets. During the year we have hit a number of milestones including securing our future energy supply volume targets with six customer contracts signed in the year. Having successfully secured these supply contracts, the Energy division is now moving into the next phase, concentrating on efficiently servicing the long-term volume. 
At London Southend Airport, we are working towards securing longer term passenger volumes and are in constructive discussions with a number of potential airlines. Our Rail business has had a good year with growth in external work. Our major investment, Eddie Stobart Logistics Limited, is performing in line with expectations.
The Group has a strong balance sheet supported by a high value of property assets with minimal debt. In January we announced the completion of a 50m four-year revolving credit facility with Lloyds Bank plc. This replaced a number of existing facilities and provides the Group with additional committed standby liquidity over the period of the business plan and provides greater funding flexibility. 
Results
 Revenue up 17.6% to 116.6m driven by strong growth in our Energy and Aviation divisions.
 Solid underlying profitability with underlying EBITDA of 17.7m and underlying profit before tax of 9.3m.
 Overall loss for the year after non-underlying items of 1.2m.
 De-risked balance sheet with gearing of 4.7% and net debt reduced by over 85% to 19.1m and a new undrawn 50m credit facility.
Board 
2014 has been a year of change for the Board and we believe that the Board, and its Committees, now have an appropriate composition and blend of backgrounds, skills and experience to fulfill our duties effectively. This was reinforced this year with a robust and largely positive external Board evaluation.
Michael Kayser and Paul Orchard-Lisle stood down from the Board at the AGM (26 June 2014). Paul Orchard-Lisle continues to contribute to the business, as Chair of the Property Operating Board. On behalf of the Board, I would like to thank Michael and Paul for their commitment and contribution to the Group and wish them well in the future. 
On 1 July 2014 Richard Butcher was appointed Executive Director, after 18 years with the Group. Richard has extensive knowledge and experience working with our business and we are delighted to welcome him to the Board. On the same date, we were also pleased to welcome John Garbutt and John Coombs to the Board as Non-Executive Directors. John Garbutt has joined the Remuneration Committee as Chairman and has also joined the Audit Committee and Nomination Committee. John Coombs has joined the Remuneration Committee, the Audit Committee and the Nomination Committee. 
Dividend and Cash Return to Shareholders
During the year 34.8m was returned to shareholders through a share buy-back
programme. Together with dividends paid, a total of 54.6m was returned to shareholders.
An interim dividend of 2.0p was paid on 5 December 2014. The Board is proposing a final dividend of 4.0p (2014: 4.0p) per ordinary share totaling 13.1m (2014: 13.2m paid on 4 July 2014) and giving a maintained total dividend for the year of 6.0p. We expect to maintain our current dividend payment level and will continue to partially fund it from property disposals in the short term.
The Board remains confident in the opportunities for our growth businesses and the strategic infrastructure that underpins them. We remain committed to creating shareholder value and have demonstrated our ability to secure the long-term growth needed to achieve our strategic aims.
Iain Ferguson CBE


Chief Executive's Statement
We have made good progress with the implementation of the final stage of Stobart Group's growth and value creation strategy. We have focused, primarily, on delivering value in our two high growth divisions of Energy and Aviation. In addition, we have driven external projects in our Rail division whilst helping develop less mature internal infrastructure assets. Our Infrastructure division has also continued to realise value for our mature property assets.
Energy
Our biomass fuel supply business has continued to progress strongly towards its volume and profit targets. Our success is measured by the performance of contracts where delivery has commenced and by securing new long-term contracts for future delivery.
We are focused on managing the sourcing, processing and delivery of wood biomass as efficiently and effectively as possible. Increases in landfill tax have tended to increase product availability and we expect market conditions, including the recovery of the construction industry, to continue to drive a healthy level of supply. As market leader in this sector we have been able to select a portfolio of projects to support through to financial close in locations where we can match demand for fuel to the availability of material, minimising the cost of logistics.
Our main KPI in this division is the annual volume of biomass fuel supplied to customers. Our target is to supply over 2 million tonnes per annum of biomass to the required specification at a suitable, sustainable margin on long-term, index-linked contracts by the 2017/2018 financial year.
The past year has seen growth in the supply and transportation of biomass to 1.2 million tonnes, up 29% from last year. We expect to see further growth this summer as the Evermore plant in Northern Ireland commences, requiring 115,000 tonnes per annum, and we continue to increase volumes with existing plants in the UK as well as the export market.
In the last quarter of our financial year we signed four major long-term customer contracts for an additional 1 million tonnes for delivery from March 2017.
Aviation
Our main KPIs in this division are passenger numbers and revenue per passenger. The infrastructure and new management team are in place to deliver our target of over 2.5 million passengers annually by 2018 and we have created capacity to handle up to 5 million passengers per annum through the new terminal. 
In the past year, we have grown passenger numbers travelling through London Southend Airport by 9% to 1.1 million and increased revenue per passenger by 8.5% to 20.80. 
We offer significant peak capacity availability and fast turnaround times at a low cost base for airlines that want a hassle-free experience for their customers. Access to the airport is good with a regular rail connection to Liverpool Street Station taking around 50 minutes and plenty of parking availability for passengers travelling by car. Our customers are important to us and after listening to them we improved the new terminal catering facilities and developed safer and more efficient security arrangements. For the second year running we received the Which? award for airport customer satisfaction. 
We are seeing interest from a number of large European operators who consider London Southend Airport a very attractive option to serve the London market. In the short term we are expecting passenger numbers to remain flat while we build these partnerships with new operators and extend relationships with existing operators to deliver sustainable routes. 
Rail
This division has seen further growth in external works in the last year with revenue up 35%. We expect this trend to continue with more spend predicted on the national rail infrastructure over the coming years. As a specialist contractor to the railway industry we see exciting opportunities ahead.
In addition to our rail expertise, we have secured non-rail civil works for third parties, in particular green energy power plant works. This will remain a focus for the division as we enter new sectors and offer new services. To support the development of non-rail civil works, we have strengthened management and introduced new skills into the business.
The Rail division continues to provide valued engineering services on internal projects, for example with the development of a 310,000 sq ft distribution centre for partners such as Eddie Stobart Logistics and EDF Energy at Carlisle Lake District Airport. Stobart Rail is also developing our processing site network for the Energy division which will ensure supply to meet our biomass commitments. 
This division is also using its engineering expertise to explore the opportunity for extraction of timber from under-managed woodland in the UK to support our Energy division with wood not suitable for other purposes.
Our main KPIs for the Rail division are third party revenue and EBITDA. Our aim is to grow third party rail and other civil works whilst delivering a safe, quality product on time and on budget. 
Infrastructure
The Stobart strategy is to realise mature businesses and assets when they reach their optimum value. We have been successful in this strategy through the Infrastructure division where we have generated 27.2m of cash from disposals in the year which, as previously identified, has been used to support our dividend. The Moneypenny property portfolio has generated an ROI of 20.7% since it was acquired in 2012. This disposal strategy will continue in the coming years.
In addition, we continue to manage our less mature assets to deliver their full potential at the point of sale. Moving forward the Infrastructure division will invest in processing sites for our Energy division which will improve profitability for our long-term biomass contracts by processing up to 50% of the product required on our own sites.
The principal KPI for this division is the cash generation from asset sales as we continue to realise the value in our mature assets and build value in others whilst developing complementary operational sites.
Investments
Eddie Stobart Logistics continues to perform well and we expect the new management to grow this business over the coming years in the private sector.
Propius owns ten ATR-72 aircraft which are leased to Stobart Air and continues to deliver good returns as expected, with the opportunity to grow.
The key is ensuring local management achieve forecasts targeted in their plan, with support from the Group where our experience can add value.
Returns to Shareholders and Reduced Debt
Since the partial disposal of the Transport and Distribution business in April 2014 we have returned to shareholders 54.6m in dividends and share buybacks. We have also de-risked our balance sheet during the year by reducing net debt from 127.9m to 19.1m giving us a year end gearing of 4.7%.
Our People
Over the past year we have implemented a people-focused strategy enabling our team to work collaboratively toward achieving our business goals. This strategy is underpinned by our core values of entrepreneurialism, efficiency and customer service. Our training and development programmes have been tailored to align with the specialist nature of the different areas of business. Stobart Group has also implemented a new Group-wide induction programme that has been rolled out to all new and existing employees. 
Brand
Stobart Group has a long heritage and is a strong brand, which is recognised as one of the UK's 'Superbrands'. This brand is associated with logistics expertise, and customer service, and these skills are at the heart of what we do now. We use our logistics expertise to source and deliver biomass, and ensure London Southend Airport runs smoothly. We apply our customer focus to ensuring biomass fuel supplies arrive, and passengers depart on time. It is this focus that has helped us to secure a 29% increase in the tonnages of biomass supplied this year, and be voted best UK airport in Which? customer satisfaction survey. We are also able to use our brand, long track record and sizeable business to reassure biomass customers and airlines that we are a stable business capable of meeting, and indeed exceeding, their expectations for years to come.
Outlook
Good progress has been made in the delivery of our volume targets for the Energy and Aviation divisions. We continue to realise value from mature assets and businesses. Our focus is now on getting new airlines into London Southend Airport, finalising our supply chain for the Energy division and driving external works in the Rail division.
As a company we remain focused and confident that Stobart Group's strengths and expertise will continue to prevail. We are well placed to deliver good returns for our shareholders now and into the future. I would also like to take this opportunity to thank the Board and every Stobart employee for their passion, hard work and dedication during the year.
Andrew Tinkler


Financial Review
I am pleased to report strong revenue growth and underlying profitability in our operating divisions, and a de-risked balance sheet.
Revenue
2015
2014
Growth
m
m
m
m
Energy
68.4
58.5
+16.9%
Aviation
23.6
20.3
+16.3%
Rail
28.0
28.8
-2.8%
Investments
-
-
-
Total for support services divisions
120.0
107.6
+11.5%
Infrastructure
5.0
9.1
-45.1%
Eliminations
(8.4)
(17.5)
+52.0%
116.6
99.2
+17.6%
Revenue from continuing operations has grown by 17.6% to 116.6m driven by increased tonnages supplied and passenger numbers in our Energy and Aviation divisions respectively. External revenue in our Rail division also increased by 35.3% to 21.1m.
Profitability
2015
2014
Growth
m
m
m
m
Underlying EBITDA*
Energy
7.8
7.4
Aviation
1.4
0.1
Rail
2.8
3.5
Investments
6.8
0.1
Total for support services divisions
18.8
11.1
+69.4%
Infrastructure
4.0
18.9
Central function and eliminations
(5.1)
(7.4)
Underlying EBITDA
17.7
22.6
-21.6%
Depreciation
(6.7)
(5.7)
Underlying finance costs (net)
(1.7)
(11.5)
Underlying profit before tax
9.3
5.4
+72.2%
Non-underlying items
(18.7)
(15.6)
Loss before tax
(9.4)
(10.2)
+7.7%
Tax
1.4
(0.4)
Discontinued operations, net of tax
6.8
21.9
-68.8%
(Loss) / profit for the year
(1.2)
11.3
* Underlying EBITDA represents underlying earnings before interest, tax, depreciation and amortisation, non-underlying items and internal rents.
Underlying EBITDA
Underlying EBITDA is our key measure of profitability for the business. Underlying EBITDA in our support services divisions has grown by 69.4% to 18.8m, and by 9.1% to 12.0m excluding the Investments division which has benefited this year from the inclusion of the results of our 49% share in the Eddie Stobart Logistics business.
Underlying EBITDA overall has fallen by 21.6% to 17.7m due to the reduction in EBITDA from the Infrastructure division in which profit on disposals and property revaluations were at a lower level than in the prior year. Central function costs and eliminations have reduced by 31.1% partly due to licence income from Eddie Stobart Logistics and a lower amount of internal profit elimination in the Rail division.
Depreciation
Depreciation has increased by 17.5% to 6.7m after the purchase under finance leases during the year of most of the vehicles used to transport biomass products. These vehicles were previously used under operating leases.
Finance costs
Finance costs (net) reduced by 85.2% to 1.7m as bank loans with M&G Investment Management Limited and GE Real Estate Finance Limited were fully repaid in the year.
Non-underlying items
2015
2014
m
m
Stobart Group:
- Amortisation of brand
3.9
0.2
- Impairment
-
13.0
- Restructuring/contract set up
2.5
2.4
- Finance costs
8.1
-
Share of post-tax profits of associates and JVs
- Amortisation of contracts
2.6
-
- Restructuring/deal costs
1.6
-
(18.7)
(15.6)
The charges in relation to the non-cash amortisation of the brands and contracts are expected to continue in future periods.
Taxation
The tax credit on continuing activities of 1.4m (2014: 0.4m charge) reflects an effective rate of 14.8% (2014: 3.9%). The effective rate is lower than the standard rate of 21.2% as deferred tax assets have not been recognised in respect of tax all losses where utilisation of these losses is uncertain.
Discontinued operations
On 10 April 2014, the Group disposed of a controlling interest in the Transport and Distribution business for gross consideration of 239.7m. The transaction leaves the Group with a remaining 49% interest in this business, via its investment in Greenwhitestar Holding Company 1 Limited, which is accounted for as an associate. The Group's share of the results of this business since the transaction are reported in the Investments business segment. The results of the disposed business for the period up to disposal, and the profit on disposal of 10.6m, are included within discontinued operations.
Business segments
The business segments reported in the financial statements are different from those reported in the prior year. The business segments are Energy, Aviation, Rail, Investments and Infrastructure. These new segments represent the operational and reporting structure of the business following the partial realisation of the Transport and Distribution business.
Earnings per share
Earnings per share from underlying continuing operations were 2.6p (2014: 0.6p).
Dividends and share buybacks
2015
2014
Interim per share
2.0p
2.0p
Final per share
4.0p
4.0p
Total per share
6.0p
6.0p
The Board is proposing to maintain the dividend level with a final dividend of 4.0p per share which, subject to approval of shareholders, will be payable to investors on the record date of 29 May 2015, with an ex-dividend date of 28 May 2015, and will be paid on 3 July 2015.
During the year, the Group purchased 26.4m of its own shares for 34.8m and these shares are held as treasury shares at the year end.
Balance sheet
2015
2014
m
m
Non-current assets
427.2
418.6
Current assets
102.1
445.1
Non-current liabilities
(70.8)
(216.3)
Current liabilities
(52.3)
(186.3)
Net assets
406.2
461.1
The net asset position has reduced by 54.9m following the 34.8m purchase of treasury shares and payment of dividends of 19.8m.
Non-Current assets
Property, plant and equipment of 221.9m (2014: 246.6m) has reduced following the reclassification of 43.9m of development land assets at Widnes and Carlisle as inventory within current assets. This has been partially offset by additions of the vehicle assets used within the biomass business.
Investment in associates and joint ventures of 57.8m (2014: 15.8m) include the Group's 49% share of the Eddie Stobart Logistics business and 33.3% share of Propius Holdings Limited. Investment property of 20.9m (2014: 30.9m) represents the holding of three (2014: seven) properties.
Amounts owed by associates and joint ventures of 10.3m (2014: 5.1m) represent interest bearing loans to renewable energy plant investments in which we also hold equity.
Intangible assets of 116.2m (2014: 120.2m) include the Stobart and Eddie Stobart brands, and goodwill which principally relates to the biomass business. The ownership of the Stobart trademarks and designs was retained by the Group following the partial disposal of the Transport and Distribution business and the Eddie Stobart brands are licenced to the disposed business under a licence agreement.
Current assets and current liabilities
Current assets include 43.9m of development land assets previously reported within non-current assets. Excluding this land the net current assets at year end totals 5.9m.
Debt and gearing
2015
2014
Net debt
19.1m
127.9m
Underlying EBITDA/underlying interest
10.4
2.0
Gearing
4.7%
27.7%
Operating lease commitments
49.1m
53.8m
The Group realised net cash (after fees) of 189.6m for the partial disposal of the Transport and Distribution business, including a 13.7m licence premium from Eddie Stobart Limited. At the same time the 100m variable rate loan with M&G Investment Management Limited was fully repaid and the facility was terminated. Also fully repaid during the year was the property loan with a balance last year end of 74.9m. This was repaid out of restricted cash held last year end, of 68.1m, and proceeds from property sales in the year. The debt at year end is all finance lease debt mainly on the vehicles used in the biomass supply business.
The Group has a new 50m variable rate committed revolving credit facility with Lloyds Bank plc with an end date of January 2019. This facility was undrawn at the year end.
Operating lease commitments have reduced in the year, mainly due to the trucks and trailers used in the Biomass business now being held under finance lease or owned outright, compared to their being leased under operating lease in the prior year.
Cashflow
2015
2014
m
m
Generated from continuing operations
5.8
7.8
Discontinued operations
(17.2)
26.1
Income taxes paid
-
(1.7)
Investing activities
199.8
10.9
Financing activities
(192.2)
(33.8)
(Decrease) / increase in the year
(3.8)
9.3
At beginning of year
9.5
0.2
Cash at end of year
5.7
9.5
Cash generated from continuing operations of 5.8m was affected by the required build-up of working capital of 1.6m in the biomass transport business which was transferred from Eddie Stobart Logistics with no working capital, and also affected by the non-underlying restructuring costs and new contract set up costs.
Net cash flow from investing activities included net cash proceeds from the partial disposal of the Transport and Distribution business and net proceeds from disposals of property assets of 27.2m.
Net cash flow from financing activities included full repayment of the 100m bank loan with M&G Investment Management Limited, full repayment of the 74.9m investment property loan with GE Real Estate Finance Limited utilising all 68.7m of restricted cash, the purchase of own shares of 34.8m and dividends paid of 19.8m.
Ben Whawell


Consolidated Income Statement 
For the year to 28 February 2015

Year ended 28 February 2015
Year ended 28 February 2014

Underlying
Non-underlying 
Total
Underlying
Non-underlying 
Total

'000
'000
'000
'000
'000
'000
Continuing operations






Revenue
116,642
-
116,642
99,179
-
99,179
Operating expenses - Items related to carrying value of investment properties and assets held for sale:






Gain in value of investment properties
1,292
-
1,292
4,223
-
4,223
Profit on disposal of investment properties
73
-
73
6,427
-
6,427
Loss on disposal of assets held for sale
(67)
-
(67)
(100)
-
(100)
Write-down in value of assets held for sale
-
-
-
(920)
-
(920)
Operating expenses - Other
(113,648)
(6,403)
(120,051)
(92,417)
(15,576)
(107,993)
Total operating expenses
(112,350)
(6,403)
(118,753)
(82,787)
(15,576)
(98,363)
Share of post-tax profits of associates and joint ventures
6,697
(4,190)
2,507
460
-
460
Operating profit/(loss)
10,989
(10,593)
396
16,852
(15,576)
1,276







Finance costs
(2,356)
(8,090)
(10,446)
(12,098)
-
(12,098)
Finance income
646
-
646
635
-
635
Profit/(loss) before tax
9,279
(18,683)
(9,404)
5,389
(15,576)
(10,187)
Tax
(652)
2,045
1,393
(3,412)
3,019
(393)
Profit/(loss) from continuing operations
8,627
(16,638)
(8,011)
1,977
(12,557)
(10,580)







Discontinued operations






(Loss)/profit from discontinued operation, net of tax
(3,713)
10,563
6,850
21,929
-
21,929
Profit/(loss) for the year
4,914
(6,075)
(1,161)
23,906
(12,557)
11,349







Profit attributable to:






Owners of the Company


(1,161)


11,339
Non-controlling interests


-


10
(Loss)/profit for the year


(1,161)


11,349


























Year ended 28 February 2015
Year ended 28 February 2014


Underlying

Total
Underlying

Total
Earnings/(loss) per share - Continuing operations
Basic

2.61p

(2.43)p
0.57p

(3.06)p
Diluted

2.61p

(2.43)p
0.57p

(3.06)p








Earnings/(loss) per share 







Basic

1.49p

(0.35)p
6.92p

3.29p
Diluted

1.49p

(0.35)p
6.92p

3.29p


























Consolidated Statement of Comprehensive Income
For the year to 28 February 2015


Year ended 28 February 2015
Year ended 28 February 2014


'000
'000




(Loss)/profit for the year

(1,161)
11,349
Exchange differences on translation of foreign operations

-
578
Cash flow hedge

120
880
Cash flow hedge - items recycled to income statement

207
-
Foreign currency translation differences - equity accounted investees

(406)
-
Pension valuation - equity accounted associates

(254)
-
Swap - equity accounted associates

(779)
-
Foreign currency translation differences - equity accounted associates

(610)
-
Foreign currency translation differences - items recycled to income statement

458
-
Revaluation of property, plant and equipment

-
(781)
Tax on items relating to components of other comprehensive income

-
(19)
Discontinued operations, net of tax, relating to exchange differences

48
(872)
Other comprehensive income/(expense) to be reclassified to profit or loss in subsequent years, net of tax

(1,216)
(214)
Re-measurement of defined benefit plan

(98)
(409)
Tax on items relating to components of other comprehensive income

20
82
Discontinued operations, net of tax, relating to re-measurement of defined benefit pension plan

-
(41)
Foreign currency translation differences - equity accounted investees



Other comprehensive expense not being reclassified to profit or loss in subsequent years, net of tax

(78)
(368)
Other comprehensive (expense)/income for the year, net of tax

(1,294)
(582)
Total comprehensive (expense)/income for the year

(2,455)
10,767




Total comprehensive (expense)/income attributable to:



Owners of the Company

(2,455)
10,757
Non-controlling interests

-
10
Total comprehensive (expense)/income for the year

(2,455)
10,767


Consolidated Statement of Financial Position
As at 28 February 2015

28 February 2015
28 February 2014


'000
'000
Non-current assets



Property, plant and equipment



- Land and buildings

179,401
219,864
- Plant and machinery

23,411
22,362
- Fixtures, fittings and equipment

1,001
1,885
- Commercial vehicles

18,102
2,535


221,915
246,646
Investment in associates and joint ventures

57,828
15,799
Investment property

20,926
30,890
Intangible assets

116,234
120,173
Trade and other receivables

10,828
5,083
 

427,731
418,591
Current assets



Inventories

46,152
962
Corporation tax

-
148
Trade and other receivables

42,421
22,637
Restricted cash

-
68,130
Cash and cash equivalents

5,716
10,720
Assets of disposal groups classified as held for sale

7,375
342,550


101,664
445,147




Total assets

529,395
863,738




Non-current liabilities



Loans and borrowings 

(17,497)
(176,681)
Defined benefit pension scheme

(2,332)
(2,398)
Other liabilities

(24,903)
(11,578)
Deferred tax

(20,362)
(22,621)
Provisions

(5,720)
(2,985)


(70,814)
(216,263)
Current liabilities



Trade and other payables

(43,853)
(21,123)
Loans and borrowings 

(7,282)
(30,028)
Corporation tax

(713)
-
Provisions

(485)
(250)
Liabilities of disposal groups classified as held for sale

-
(134,936)


(52,333)
(186,337)




Total liabilities

(123,147)
(402,600)




Net assets

406,248
461,138






Consolidated Statement of Financial Position, Continued
As at 28 February 2015






28 February 2015
28 February 2014


'000
'000
Capital and reserves 



Issued share capital

35,434
35,434
Share premium

301,326
301,326
Foreign currency exchange reserve

(1,016)
(506)
Reserve for own shares held by employee benefit trust

(330)
(408)
Hedge reserve

-
(327)
Retained earnings

70,834
125,606
Group Shareholders' Equity

406,248
461,125
Non-controlling interest

-
13
Total Equity

406,248
461,138

Consolidated Statement of Changes in Equity 
For the year to 28 February 2015
Issued share capital
Share premium
Foreign currency exchange reserve
Reserve for own shares held by EBT
Hedge reserve
Retained earnings
Total 
Non-controlling interest
Total equity

'000
'000
'000
'000
'000
'000
'000
'000
'000
Balance at 1 March 2014
35,434
301,326
(506)
(408)
(327)
125,606
461,125
13
461,138
Loss for the year
-
-
-
-
-
(1,161)
(1,161)
-
(1,161)
Other comprehensive income/(expense) for the year
-
-
(510)
-
327
(1,111)
(1,294)
-
(1,294)
Total comprehensive income/(expense) for the year
-
-
(510)
-
327
(2,272)
(2,455)
-
(2,455)
Employee benefit trust shares granted
-
-
-
78
-
-
78
-
78
Share-based payment credit
-
-
-
-
-
1,966
1,966
-
1,966
Tax on share-based payment credit
-
-
-
-
-
106
106
-
106
Purchase of treasury shares
-
-
-
-
-
(34,764)
(34,764)
-
(34,764)
Disposal of minority interest
-
-
-
-
-
-
-
(13)
(13)
Dividends





(19,808)
(19,808)
-
(19,808)
Balance at 28 February 2015
35,434
301,326
(1,016)
(330)
-
70,834
406,248
-
406,248


Consolidated Statement of Changes in Equity 
For the year to 28 February 2014 (Restated)
Issued share capital
Share premium
Foreign currency exchange reserve
Reserve for own shares held by EBT
Hedge reserve
Revaluation reserve
Retained earnings
Total 
Non-controlling interest
Total equity

'000
'000
'000
'000
'000
'000
'000
'000
'000
'000
Balance at 1 March 2013
35,397
300,788
(212)
(386)
(1,032)
781
126,748
462,084
3
462,087
Profit for the year
-
-
-
-
-
-
11,339
11,339
10
11,349
Other comprehensive (expense)/income for the year
-
-
(294)
-
705
(781)
(212)
(582)
-
(582)
Total comprehensive (expense)/income for the year
-
-
(294)
-
705
(781)
11,127
10,757
10
10,767
Proceeds on share issues
37
277
-
(22)
-
-
-
292
-
292
Share-based payment credit
-
-
-
-
-
-
434
434
-
434
Tax on share-based payment
-
-
-
-
-
-
(108)
(108)
-
(108)
Sale of treasury shares
-
261
-
-
-
-
8,560
8,821
-
8,821
Dividends paid to minority interest
-
-
-
-
-
-
(312)
(312)
-
(312)
Dividends
-
-
-
-
-
-
(20,843)
(20,843)
-
(20,843)
Balance at 28 February 2014
35,434
301,326
(506)
(408)
(327)
-
125,606
461,125
13
461,138

Consolidated Cash Flow Statement
For the year to 28 February 2015


Year ended 28 February 2015
Year ended 28 February 2014


'000
'000
Cash generated from continuing operations

5,832
7,787
Cash (outflow)/inflow from discontinued operations

(16,669)
26,074
Income taxes paid

(10)
(1,668)
Net cash flow from operating activities

(10,847)
32,193




Transaction costs

-
(80)
Purchase of property, plant and equipment and investment property

(10,145)
(17,009)
Proceeds from grants

607
2,766
Proceeds from the sale of property, plant and equipment and investment property

15,660
17,237
Proceeds from disposal of assets held for sale

12,830
1,925
Proceeds from disposal of subsidiary undertaking (net of fees)

175,894
-
Proceeds from issue of licence premium

13,700
-
Equity investment in joint ventures

(1,439)
(8,846)
Distributions from joint ventures

2,874
-
Net amounts (advanced to)/repaid by joint ventures

(10,444)
2,362
Other loans advanced

(300)

Interest received

549
511
Cash inflow from discontinued operations

349
12,018
Net cash flow from investing activities

200,135
10,884




Issue costs paid on ordinary shares

-
(21)
Dividend paid on ordinary shares

(19,808)
(20,509)
Repayment of capital element of finance leases

(4,939)
(2,183)
Proceeds from new borrowings

14,332
14,965
Repayment of borrowings

(143,589)
(13,419)
(Purchase)/sale of treasury shares, net of costs

(34,764)
8,821
Interest paid

(2,105)
(13,421)
Interest paid - non-underlying

(1,278)
-
Other finance and transaction costs

-
(400)
Net cash transferred to restricted cash

-
(894)
Cash outflow from discontinued operations

(907)
(6,688)
Net cash flow from financing activities

(193,058)
(33,749)




(Decrease)/increase in cash and cash equivalents

(3,770)
9,328
Cash and cash equivalents at beginning of year

9,486
158
Cash and cash equivalents at end of year

5,716
9,486


Consolidated Cash Flow Statement, Continued
For the year to 28 February 2015


2015
'000
2014
'000
(Decrease)/increase in cash and cash equivalents

(3,770)
9,328
Cash and cash equivalents at beginning of year

9,486
158
Cash and cash equivalents at end of year

5,716
9,486
Restricted cash movements



Cash and cash equivalents at beginning of year

68,130
12,755
Proceeds from the sale of property, plant and equipment and investment property

-
54,357
Repayment of borrowings

(64,130)
-
Interest paid - non-underlying

(4,000)
-
Interest received

-
124
Net cash transferred from unrestricted cash

-
894
(Decrease)/increase in cash and cash equivalents

(68,130)
55,375
Restricted cash at end of year

-
68,130
Total cash and cash equivalents at end of year, including Restricted cash

5,716
77,616
Cash - Continuing

5,716
78,850
Cash - Reclassified as held for sale

-
11,797
Overdraft - Continuing

-
(4,522)
Overdraft - Reclassified as held for sale

-
(8,509)
Cash and cash equivalents at end of year, including Restricted cash

5,716
77,616

Notes to the Consolidated Financial Statements
For the year to 28 February 2015
Accounting Policies of Stobart Group Limited
Basis of preparation and statement of compliance
The financial information set out in this preliminary announcement is derived from but does not constitute the Group's statutory accounts for the year ended 28 February 2015 and year ended 28 February 2014 and, as such, does not contain all information required to be disclosed in the financial statements prepared in accordance with International Financial Reporting Standards ("IFRS"). The financial information has been extracted from the Group's audited consolidated statutory accounts upon which the auditors issued an unqualified opinion.
The preliminary announcement has been prepared on the same basis as the accounting policies set out in the previous year's financial statements.
The financial statements of the Group are also prepared in accordance with the Companies (Guernsey) Law
2008.
Stobart Group Limited is a Guernsey registered company. The Company's ordinary shares are traded on the
London Stock Exchange.
Going Concern
The Group's business activities, together with factors likely to affect its future performance and position, are set out in the Chief Executive's Statement and the financial position of the Group, its cash flows and funding are set out in the Financial Review.
The Group has considerable financial resources, together with contracts with a number of customers and suppliers. The financial forecasts show that the Group's remaining borrowing facilities are adequate such that the Group can operate within these facilities and meet its obligations when they fall due for the foreseeable future. 
After making enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis. 
Presentation of Consolidated Income Statement
The presentation of the Consolidated Income Statement has been amended in these financial statements to show the underlying results and non-underlying results, including non-underlying items included in the Group's share of profits of associates and joint ventures, in separate columns. These non-underlying items are material incomes and expenses, which because of their nature, infrequency or occurrence, or the events giving rise to them, merit separate presentation to allow shareholders to better understand the financial performance of the period. Underlying operating profit and underlying profit before tax are non GAAP measures which comprise operating profit and profit before tax respectively before non-underlying items. The columnar format is considered to be the clearest method of presentation of this information.


Segmental information

As reported in May 2014 the Group has revised its internal reporting structure. The new operating segments within continuing operations are Stobart Energy, Stobart Aviation, Stobart Rail, Stobart Investments and Stobart Infrastructure.
The reportable segment structure is determined by nature of operations and services. 
The Stobart Energy segment specialises in supply of sustainable biomass for the generation of renewable energy.
The Stobart Aviation segment specialises in operation of commercial airports and includes a joint venture investment in an airline.
The Stobart Rail segment specialises in delivering internal and external civil engineering development projects including rail network operations.
The Stobart Investments segment holds non-controlling interests in a transport and distribution business and an aircraft leasing business.
The Stobart Infrastructure segment specialises in management, development and realisation of Group land and buildings assets as well as investments in energy plants.
The Executive Directors are regarded as the Chief Operating Decision Maker (CODM). The Directors monitor the results of each business unit separately for the purposes of making decisions about resource allocation and performance assessment. The main segmental profit measure is earnings before interest, tax, depreciation, amortisation and internal rent and is shown before non-underlying items.
Income taxes, finance costs and certain central costs are managed on a Group basis and are not allocated to operating segments.

Year ended 28 February 2015
Energy
Aviation
Rail
Investments
Infrastructure
Adjustments and eliminations
Group

'000
'000
'000
'000
'000
'000
'000
Revenue







External
61,894
23,627
21,086
-
4,657
5,378
116,642
Internal
6,476
-
6,946
-
330
(13,752)
-
Total revenue
68,370
23,627
28,032
-
4,987
(8,374)
116,642








Segment EBITDA before internal rent
7,765
1,439
2,826
6,792
4,032
(5,114)
17,740
Internal rent charge
-
(739)
-
-
739
-
-
Segment EBITDA after internal rent
7,765
700
2,826
6,792
4,771
(5,114)
17,740
Segment PBT
6,567
(644)
1,205
6,792
1,576
(6,217)
9,279
New business and new contract set up costs






(779)
Restructuring costs






(1,685)
Amortisation of acquired intangibles






(3,939)
Non-underlying finance costs






(8,090)
Non-underlying items included in share of post-tax profits of associates and joint ventures






(4,190)
Loss on continuing operations before tax






(9,404)










Year ended 28 February 2014
Restated
Energy
Aviation
Rail
Investments
Infrastructure
Adjustments and eliminations
Group

'000
'000
'000
'000
'000
'000
'000
Revenue







External
53,169
20,342
15,579
-
7,468
2,621
99,179
Internal
5,281
-
13,208
-
1,622
(20,111)
-
Total revenue
58,450
20,342
28,787
-
9,090
(17,490)
99,179








Segment EBITDA before internal rent
7,390
91
3,490
91
18,888
(7,329)
22,621
Internal rent charge
-
(21)
-
-
21
-
-
Segment EBITDA after internal rent
7,390
70
3,490
91
18,909
(7,329)
22,621
Segment PBT
6,621
(979)
1,884
91
7,334
(9,562)
5,389
Transactions costs written off






(480)
Restructuring costs






(1,905)
Amortisation of acquired intangibles






(221)
Impairment of property, plant and equipment






(12,970)
Profit before tax






(10,187)








No segmental assets or liabilities information is disclosed because no such information is regularly provided to, or reviewed by, the Chief Operating Decision Maker.
Inter-segment revenues are eliminated on consolidation.
Included in adjustments and eliminations are net central costs of 6,504,000 (2014: 9,020,000) and an intra-group lossof 287,000 (2014: profit 542,000).There is also external income within adjustments and eliminations which comprises brand licence income, merchandising income and income from other business services.
Discontinued Operations
Partial Disposal of the Transport and Distribution Business
The Group disposed of a controlling interest in a substantial proportion of the Transport and Distribution business on 10 April 2014. The Group has retained a 49% interest in the business, which is accounted for as an associate in the year. The environmental transport business unit, which was previously part of the Transport and Distribution business, was also retained and its results are reported in the Energy segment.
The results of the disposed business have been reported separately as a single amount presented within discontinued operations. The operation represented a separate major line of business.
The profit from discontinued operations of 6,850,000 (2014: 21,929,000) is attributable to the owners of the Company, with the exception of nil (2014: 10,000) that is attributable to the minority interest. There was no loss recorded on remeasurement to fair value less costs to sell.
The consideration received for disposal of the business was 239,700,000, comprising of cash of 190,600,000, including 13,700,000 for the issue of a licence premium, loan notes of 5,000,000, and fair value of the remaining 49% of the business of 44,100,000. The fair value was based on an enterprise value calculation taking into consideration the significant new debt within the business. The loan notes were repaid on 24 April 2014. The profit on disposal recorded within discontinued operations was 10,563,000 after deducting fees and other costs directly related to the disposal.
The license premium is being amortised over six years, being the period over which Eddie Stobart Logistics has the right to use the Eddie Stobart brand for no additional consideration.

2015
2014
Results of discontinued operations
'000
'000
Revenue
46,845
559,661
Operating expenses - other
(49,696)
(533,372)
Transaction costs
-
(391)
Restructuring costs
-
(3,221)
Amortisation of acquired intangibles
(6)
(76)
Net finance costs
(14)
(1,586)
Profit on partial disposal of business
10,563
-
Profit before tax
7,692
21,015
Tax
(842)
914
Profit for the year from discontinued operations, net of tax
6,850
21,929
Basic earnings per share
2.08p
6.35p
Diluted earnings per share
2.08p
6.35p




2015
2014
Cash flows used in discontinued operations
'000
'000
Net cash (used in)/from operating activities
(16,669)
26,074
Net cash from investing activities
349
12,018
Net cash used in financing activities
(907)
(6,688)
Net cash flows for the year
(17,227)
31,404
Underlying profit before tax of the Transport and Distribution business of 25.3m in 2014 reflects the profit before tax of 21.0m plus the amortisation of acquired intangibles of 0.1m plus the restructuring costs 3.2m plus the transaction costs of 0.4m plus the loss before tax in respect of the chilled pallet network business of 0.6m. The chilled pallet network business was first reported as a discontinued operation in the financial statements for the year to 28 February 2013 and represented a separate major line of business. 
The above profit on partial disposal of business of 10,563,000 is calculated as proceeds of 239,700,000 less costs of disposal of 8,642,000 less net assets disposed of 220,495,000.
The revenue from one customer amounted to more than 10% of the Group's discontinued revenue. The revenue from that customer reported within discontinued operations was 14,547,000 for the year to 28 February 2015 (2014: 201,351,000).
The accounting for the Group's share of the results of the remaining 49% of the business requires identification of the fair value of the investee's identifiable assets and liabilities including intangible assets. 
The share of the post tax results of the associate for the year of 2,200,000, included in the Consolidated Income Statement total of 2,507,000, includes a share of non-underlying items totalling a cost of 4,190,000. 
Non-Underlying Items
Non-underlying items included in the consolidated income statement comprise the items set out and described below.

2015
2014

'000
'000
Operating expenses - other


- New business and new contract set up costs
779
-
- Transaction costs
-
480
- Restructuring costs
1,685
1,905
- Impairment of property, plant and equipment
-
12,970
- Amortisation of acquired intangibles
3,939
221

6,403
15,576



Share of post-tax profits of associates and joint ventures


- Transaction costs
704
-
- Restructuring costs
886
-
- Amortisation of acquired intangibles
2,600
-

4,190
-
New business and new contract set up costs comprise costs of investing in major new business areas or major new contracts to commence or accelerate development of our business presence. These costs include marketing costs, establishment costs, legal and professional fees, losses and certain staff and training costs. The costs in the current year were in relation to the development of business at London Southend Airport.
Transaction costs comprise costs of making investments or costs of financing transactions that are not permitted to be debited to the cost of investment or as issue costs. These costs include costs of any aborted transactions. 
Restructuring costs comprise costs of integration plans and other business reorganisation and restructuring undertaken by management. Costs include cost rationalisation, brand harmonisation, site closure costs, certain short-term duplicated costs, asset write downs and other costs related to the reorganisation and integration of businesses. These are principally expected to be one off in nature. The costs in the current year were principally in relation to site restructuring in Stobart Energy and restructuring the terminal security operations at London Southend Airport.
Impairment of property, plant and equipment charges are considered to be non-recurring, due to their nature, and outside of the normal activities of the Group.
Amortisation of acquired intangibles comprises the amortisation of intangible assets including those identified as fair value adjustments in acquisition accounting. The charge in the year is principally in connection with amortisation of the brand assets.
Non-underlying items included in the share of post-tax profits of associates and joint ventures all relate to the investment in Greenwhitestar Holding Company 1 Limited. Transaction costs relate to the cost of the partial disposal transaction, restructuring costs include costs of the restructuring of the Automotive business and amortisation of acquired intangibles includes amortisation of the customer relationships.
Non-underlying finance costs of 8,090,000, which are not included above, comprise the costs associated with the early repayment of debt balances. Costs include repayment fees, associated issue costs written off and directly related professional fees. The costs in the year were incurred in connection with the repayment of a 100,000,000 variable rate loan with M&G Investment Management Limited and repayment of a substantial proportion of a property loan with GE Real Estate Finance Limited.
Dividends
Dividends paid on ordinary shares
2015
Rate
2015
2014
Rate
2014

p
'000
p
'000
Interim dividend paid 5 December 2014
2.0
6,559
-
-
Final dividend for 2014 paid 4 July 2014
4.0
13,249
-
-
Interim dividend paid 6 December 2013
-
-
2.0
6,952
Final dividend for 2013 paid 5 July 2013
-
-
4.0
13,891

6.0
19,808
6.0
20,843
A final dividend of 4.0p per share totalling 13,117,033 was declared on 14 May 2015 and subject to shareholder approval will be paid on 3 July 2015. This is not recognised as a liability as at 28 February 2015. 
Of the 13,891,000 dividend in July 2013, 334,000 was settled by the issue of shares under a scrip offer.
Financial assets and liabilities


2015
2014


'000
'000
Loans and borrowings







Non-current



Fixed rate:



- Obligations under finance leases and hire purchase contracts

6,045
10,009
- Bank loans

-
69,828




Variable rate:
- Obligations under finance leases and hire purchase contracts

11,452
-
- Bank loans

-
96,844


17,497
176,681




Current



Fixed rate:



- Obligations under finance leases and hire purchase contracts

2,559
2,652
- Loan notes

-
2,820




Variable rate:

  
- Obligations under finance lease and hire purchase contracts

4,723
-
- Overdrafts

-
4,522
- Bank loans

-
20,034


7,282
30,028




Total loans and borrowings

24,779
206,709
Cash

5,716
10,720
Restricted cash

-
68,130
Net debt

19,063
127,859
The obligations under finance leases and hire purchase contracts are taken out with various lenders at fixed or variable interest rates prevailing at the inception of the contracts.
The bank loans at the prior year end included a 100,000,000 variable rate group finance arrangement. This loan was fully repaid on 11 April 2014. Also included in bank loans at the prior year end was a 74,864,000 property loan. On 9 January 2015 the property loan was fully repaid. The bank loans at prior year end also included 15,000,000 drawn on a 20,000,000 variable rate committed revolving credit facility with a facility end date of February 2016. This facility was fully repaid on 26 January 2015 and replaced with a new 50,000,000 variable rate committed revolving credit facility with a facility end date of January 2019. This 50,000,000 facility was fully undrawn at 28 February 2015.
Included in cash at the prior year end was 68,130,000 of 'Restricted cash' held in an asset proceeds account and its use was restricted to reinvestment in new property assets or repayment of the property loan. This Restricted cash was used to repay a substantial proportion of the 74,864,000 property loan on 3 March 2014 and subsequently the remaining property loan was fully repaid on 9 January 2015.
The loan notes were issued in connection with the acquisition of Stobart Biomass Products Limited on 19 May 2011. These loan notes were fully repaid on 5 March 2014. 
Non-underlying finance costs of 8,090,000 (2014: nil) includes the early repayment fees payable in connection with the two substantial repayments set out above as well as the write off of the debt issue costs carried in relation to the repaid amounts.
The Group was in compliance with financial covenants throughout the year and the previous year.
Note to the consolidated cash flow statement


Year to 28 February 2015
Year to 28 February 2014


'000
'000




Loss before tax from continuing operations

(9,404)
(10,187)




Adjustments to reconcile loss before tax to net cash flows:







Non-cash:



Gain in value of investment properties

(1,292)
(4,223)
Realised profit on sale of property, plant and equipment and investment properties

(305)
(7,397)
Share of post-tax profits of associates and joint ventures accounted for using the equity method

(2,507)
(460)
Loss on disposal of/loss in value of assets held for sale

67
1,020
Depreciation of property, plant and equipment

6,751
5,769
Impairment of assets

-
12,970
Finance income

(646)
(635)
Interest expense

2,356
12,098
Finance costs - non-underlying

8,090
-
Release of grant income

(277)
(240)
Non-operating transaction costs

-
480
Amortisation of intangibles

3,939
221
Share option charge

523
369




Working capital adjustments:



(Increase)/decrease in inventories

(94)
529
(Increase)/decrease in trade and other receivables

(14,493)
3,906
Increase/(decrease) in trade and other payables

13,124
(6,433)




Cash generated from continuing operations

5,832
7,787
Related Parties
Relationships of Common Control or Significant Influence
WA Developments International Limited is owned by WA Tinkler. During the year, the Group paid rent of nil (2014: 20,000) and levied recharges of 150,000 (2014: 119,000) relating to the recovery of staff costs and expenses to WA Developments International Limited. nil (2014: 48,000) was due from and nil (2014: 11,000) was due to WA Developments International Limited at the year end.
Apollo Air Services Limited is owned by WA Tinkler. During the year, the Group made purchases of 452,000 (2014: 407,000) relating to the provision of passenger transport and sales of 17,000 (2014: nil) relating to fuel to Apollo Air Services Limited. 32,000 (2014: 29,000) was owed by the Group and 2,000 (2014: nil) was owed to the Group by this company at the year end.
The following disclosures relating to Ast Signs Limited and total emoluments of close family members of W Stobart cover the period 1 March 2014 to 10 April 2014. This is the period during which W Stobart was an Executive Director of Stobart Group Limited.
During the year the Group made purchases of nil (2014: 254,000), relating to the provision of branded products and vehicle advertising, from Ast Signs Limited, a Company in which W Stobart holds a 27% shareholding.
During the year a number of close family members of WA Tinkler and W Stobart were employed by the Group. The total emoluments of those close family members, including benefits provided as part of their employment, amounted to 48,000 (2014: 100,000).
Associates and Joint Ventures
Since the partial disposal of the Transport and Distribution business, there have been a number of transactions with the group headed by Greenwhitestar Holding Company 1 Limited, an associate interest, which owns Eddie Stobart Logistics Limited. From the date of disposal to the year end, the Group made sales of 7,298,000, mainly relating to cost recharges, (see below) and purchases of 17,986,000, mainly relating to haulage costs and cost recharges (see below). A balance of 1,254,000 was owed by the Group and 1,124,000 was owed to the Group at the year end.These balances are shown within current trade and other receivables / payables.
The Group and members of the group headed by Greenwhitestar Holding Company 1 Limited are operating under a transitional services agreement for a period following the partial disposal. This agreement details recharges for shared services; significant examples are time apportioned staff costs, truck and trailer hire costs, property leases, office space rental charges, fuel and car costs, IT hardware and software costs and payroll processing costs.
The Group had loans outstanding from its joint venture interest, Convoy Limited of nil (2014: 2,132,000) at the year end. This loan was fully repaid during the year.This loan was accounted for an equity investment in associates and joint ventures and the repayment in the year is part of the distributions received in the reconciliation of investments.
The Group had loans, not part of the net investment, outstanding from companies within the group headed by its joint venture interest, Everdeal Holdings Limited, of 6,538,000 (2014: 782,000) at the year end. The loans are unsecured, will be settled in cash and are due for repayment in September 2015 or at the Group's discretion. During the year, the Group made sales of 1,828,000 (2014: 615,000) to a 100% subsidiary of Everdeal Holdings Limited. A balance of 140,000 (2014: 202,000) was owed to the Group at the year end. The interest receivable during the year was 37,000 (2014: 174,000) with both balances disclosed as part of trade and other receivables. 
The Group had loans, not part of the net investment, outstanding from its associate interest, Shuban Power Limited, of 5,784,000 (2014: 4,281,000) at the year end. This balance is disclosed within trade and other receivables in non-current assets. The loans are unsecured, will be settled in cash and have no fixed repayment date.
The Group had loans, not part of the net investment, outstanding from its associate interest, Shuban 6 Limited, of 802,000 (2014: 802,000) at the year end and is disclosed within trade and other receivables in non-current assets. The interest outstanding at the year end was 22,000 (2014: 28,000) and is disclosed within trade and other receivables. The loans are unsecured, will be settled in cash and have no fixed repayment date.
The Group has loans, not part of the net investment, outstanding from its associate interest, Mersey Bioenergy Holdings Limited, of 3,758,000 (2014: nil) at the year end. This balance is disclosed within trade and other receivables in non-current assets. The loans are unsecured, have a ten year term ending in November 2024 and will be settled in cash. During the year the Group made sales of 2,200,000
(2014: nil), relating to the sale of land, and purchases of 100,000 (2014: nil) from its associate interest, Mersey Bioenergy Holdings Limited, of which nil (2014: nil) was outstanding at the year end.
All loans are unsecured and all sales and purchases are settled in cash on the Group's standard commercial terms.
Post Balance Sheet Events
There were no events after the reporting period that are material for disclosure in the financial statements.

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