Stobart Group (STOB)

Business description

Stobart consists of two divisions: Infrastructure and Support Services operating across Aviation, Energy, Rail and Investments.

Investment summary

Interim results highlighted the integrated aviation strategy, leveraging the arrival of CEO Warwick Brady. Strong passenger growth and the launch of the executive jet centre at London Southend Airport in November should support FY growth expectations. The Energy division continues to balance short-term volume uncertainty against longer-term volume certainty, good cash generation and potential for margin improvement. Rail continues to develop its pipeline of work and growth delivery. The Infrastructure division traded behind H1 expectations but looks set to make this up in H2.

Last updated on 13/12/2017

Y/E Feb Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 126.7 30.0 20.6 5.9 45.2 4371.9
2017A 129.4 35.0 26.0 7.2 37.0 N/A
2018E 279.5 143.2 133.1 37.3 7.1 198.8
2019E 362.5 43.0 31.2 7.9 33.7 30.4

Last updated on 06/12/2017

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Stobart Group

Industry outlook

The key message from Stobart is about working towards clear growth targets via three key divisions, with the dividend supported by non-operating disposals through to 2022 as operating cash grows. Aviation relies on the interplay between capacity and GDP, while Energy depends on government incentives and ensuring plants deliver to target ratios. The Rail business is driven by allowed capex spend. In addition, Property valuation drives a high percentage of book value.

Last updated on 13/12/2017

Key management

Iain Ferguson CBE, Chairman
Warwick Brady, CEO
Ben Whawell, FD

Company address

22 Soho Square
London
W1D 4NS
United Kingdom
+44 (0) 1925 605 400
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