Recession Hits Stobart Group
LONDON -- Stobart (ISE: STOB.L) reversed 3 pence to 116 pence in early London trading after the haulage group admitted the "current recessionary climate" had affected its performance during the last six months.
Stobart, which is best known for its 2,000-plus Eddie Stobart lorries, said recent trading within its transport division had been lower than expected. The group's last full-year results showed the transport division producing 80% of total profits.
Stobart added today that, although the majority of the firm's transport business had progressed well, the restructuring of its chilled-delivery fleet alongside bad summer weather had resulted in "some losses".
Today's statement also confirmed Stobart's Biomass division could enjoy "major contracts" later this year. Meanwhile, passengers flying with easyJet and Aer Lingus have continued to grow in number at Stobart's Southend airport.
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