Stobart on track for FY

Logistics firm Stobart Group said it expects to meet expectations for the 12 months to the end of February.

It said that some divisions were performing ahead of expectations, which were making up for others that were performing slightly worse than predicted.

The company also announced it would buy 18 freehold and long leasehold properties for £12.35m from W.A. Developments International.

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Stobart Estates will buy WADI Properties from the vendor, which brings with it a portfolio of UK industrial, commercial, retail and residential properties.

Rodney Baker-Bates, non-executive Chairman of Stobart, said the purchase would diversify and strengthen the company's existing property portfolio.

"We have the management capability within the group to improve both the income and capital performance," he said.

"It will provide positive cash flow, gives a return above our current cost of capital, and offers substantial capital upside potential."

In its trading update, Stobard said its Transport and Distribution division was operating in a challenging economic environment but 'ambient transport operations' had progressed well in the second half of the year and were in a strong position going into 2012.

The focus is now on restructuring and improving the chilled and warehousing operations which are performing below the prior year, it said.

This restructuring would result in a more efficient operation to take advantage of future market opportunities, the firm added.