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Stobart Group: still a road haulier at heart

Wednesday 28 October 2009 11:07

Stobart Group says it will always remain a road transport and warehousing business at heart, despite its increasing diversification into other modes of transport.

The comments from CFO Ben Whawell came on the back of the announcement of its interim results for the six months ending 31 August: turnover was up 10% to £218.2m and pre-tax profit rose 13% to £12.4m.

The firm also announced that its new weekly temperature-controlled rail service from Valencia to the UK, in partnership with DB Schenker, was due to begin shortly, generating annual revenue of €6.3m (£5.7m).

Nonetheless, Whawell is quick to point out that the vast majority of its turnover - around £190m - is still generated by the road transport and warehousing operation.

He says: "We are always going to have a bias towards road transport. Trains work over certain distances, but you always need a vehicle at either end."

During the six months, Stobart Group completed the integration of the former James Irlam business, saving £1.1m per year; the restructuring of the former Innovate chilled business will be completed by the end of November, Whawell adds.

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