Stobart hits the brakes on profit

Logistics firm Stobart said underlying pre-tax profit fell as the recessionary climate continues to hurt growth in the transport sector, however it said long term expectations across the business remain robust.

The haulage firm, which has been streamlining the business, said it is confident it has positioned itself well in a challenging economic environment.

Underlying pre-tax profit fell to £13.2m for the six months ended August 31st 2012 from £16.4m the same time a year earlier. Revenue slipped to £278.5m during the period from £281.1m before.

Chief Executive Officer Andrew Tinkler said: "We have worked hard to improve margins and profitability in our core transport business despite tough trading conditions. We are well underway with delivering the stated plan for the group."

Underlying pre-tax profit in its Transport & Distribution division business increased to £14.2m from £13.7m before. Pre-tax profit fell to £6.6m from £14.7m after restructuring costs in chilled distribution business, transaction costs and higher interest charges.

Net cash generated from operations fell to £10.9m from £27.8m in 2011.

Stobart has maintained its interim dividend of 2p.

CJ