Aviation and energy infrastructure group Stobart has reported a 400 per cent rise in pre-tax loss as passenger travel has been “severely disrupted” by the Covid-19 pandemic.
In its results for the half year to August 31, the group reported pre-tax loss increased 399 per cent to £77.4m, up from £15.5m the year before.
The group also reported revenue decreased 28.9 per cent to £53.2m, down from £74.8m for the same period the year before.
Stobart Group chief executive Warwick Brady said the pandemic has created “unprecedented challenges” and the group has taken “decisive action to bolster liquidity, reduce cash burn and protect our long-term strategic objectives”.
In September, the group’s Aviation Services arm announced proposed redundancies that would see 63 Manchester Airport workers made redundant, accounting for 42 per cent of its workforce.
“These actions should allow us to emerge from this crisis in the best possible position to deliver our focused strategy,” he said.
“While passenger travel has been severely disrupted by lockdowns and evolving quarantine arrangements, London Southend Airport has benefited from uninterrupted income from its global logistics operation.”
The group said it remained focused on exiting Stobart Air, as trading outlook has “deteriorated significantly since the capital raise due to the continued quarantine arrangements in Ireland, with limited flights operating”.
Mr Brady continued: “At Stobart Energy, we are seeing a more consistent demand profile and have taken appropriate actions to ensure certainty of supply of waste wood for customers over the winter period to fulfil our valuable long-term supply contracts.
“We remain focused on realising value for shareholders from Stobart Energy as a maturing, cash generative and stable business over the next 18 months and are considering all options to achieve this.”
He said the group has “immediate” access to liquidity, with £119.1m in cash and undrawn banking facilities.
“Our focus remains on what we can control, namely managing our operations well, optimising both cost and cash management and rationalising the portfolio to maximise value.
“We continue to believe our future strategy and the medium-term move to a pure play airport and aviation services business will deliver superior shareholder returns.”
