£487.1m market cap
130p last close
Stobart Group owns and operates London Southend Airport, renewable energy fuel processing and supply assets, a rail and civil engineering business, a property portfolio, a regional airline/leasing company and non-controlling equity investments in logistics.
Investment summary
We see investor opportunity in Stobart’s main divisions of Aviation and Energy, which continue to perform well and will benefit from planned investment, notably in Aviation, which should expand the business and drive long-term profitability. Underlying EBITDA grew strongly, up 10% in the first half. Aviation saw a strong rise in both passenger numbers and underlying EBITDA per passenger at London Southend airport, its main business. Energy’s performance has benefitted from higher volumes, a better customer mix, operational gearing and cost management.
Y/E Feb |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2017A | 129.0 | 34.0 | 27.0 | 8.0 | 16.3 | N/A |
| 2018A | 242.0 | 154.0 | 136.0 | 38.0 | 3.4 | N/A |
| 2019E | 279.0 | 26.0 | 8.0 | 2.3 | 56.5 | N/A |
| 2020E | 311.0 | 41.0 | 18.0 | 5.0 | 26.0 | 9.8 |
| Last updated on 13/09/2019 | ||||||
Industry outlook
We see a long-term growth outlook for both Aviation and Energy industries. In Aviation London Southend airport should benefit from significant passenger growth in 2019 and 2020 also thanks to new/expanded agreements with airlines, while in Energy a growing biomass demand outlook should continue to support revenue growth. Due to the exposure to the UK, uncertainties around the economic impact of Brexit represent one of the most significant risks, in our view.
Last updated on 13/09/2019
Sector |
|---|
| Industrials |
Share price graph
Balance sheet |
|
|---|---|
| Forecast net debt (£m) | 108 |
| Forecast gearing ratio (%) | 30 |
Price performance
% |
1m |
3m |
12m |
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Key management |
|
|---|---|
| Iain Ferguson CBE | Chairman |
| Warwick Brady | CEO |
| Richard Laycock | FD |
Content on Stobart Group
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