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Non-Executive Chairman’s Statement
Performance
The Group has taken on a significant amount of new business
in the past year so we have paid particular attention to
integrating these contracts without diluting our margins. We
have increased our ability to use freelance staff at times of peak
demand, temporarily expanding the fleet by as much as 10%
on any given day in response to customer requests. Whilst fleet
utilisation has been broadly flat year on year, it continues to be
amongst the highest in the industry. We have been largely
unaffected by the fuel price increases due to fuel price
escalators in over 90% of our work.
2010 was our 40th anniversary year and it was marked by
some exciting developments in the Group’s newest business
areas, Air and Biomass. It was also recorded and brought to a
wide audience of almost 2 million people through the “Trucks
and Trailers” TV Series, which successfully portrayed a dynamic
company and unexpectedly boosted our customers’
understanding and appreciation of our services.
Dividend
The Group maintains a stable dividend policy, which takes into
account both the underlying growth in Group earnings and the
need for investment. An interim dividend of 2p was paid in
December 2010. The Board is proposing a final dividend of 4p
per ordinary share, bringing the total dividend for the year to
6p (2010: 6p). The final dividend will be paid to shareholders
on 7 July 2011.
People
At the start of the current financial year, following an
operational review, William Stobart and David Irlam stepped
down from the Group Board to allow them to focus full time
their experience and leadership on the core transport and
logistics divisions. They remain Directors of the key operating
subsidiaries, with William as Chief Operating Officer (COO) and
David with responsibility for business development. At the
same time, Nick Watts and Daniel Dayan stepped down from
their roles as Non-Executive Directors.
In May, following a successful capital raising and the Group’s
increasing focus on its Estates and Transport divisions, we were
pleased to welcome Paul Orchard-Lisle, Alan Kelsey and David
Beever to the Board as Non-Executive Directors. Paul has many
years of experience in the property industry, Alan was a leading
equities analyst covering the transport sector, whilst David
brings his considerable corporate finance experience. Alan has
also taken on the role of Senior Independent Director.
Outlook
Having secured funding for the proposed investment in both
new and existing business areas, the Group is entering an
exciting phase. We will be developing the substantial property
assets held by the Group by building them out and then leasing
them advantageously. We will also continue to invest in our
transport and distribution business, as well as in air and biomass.
A key to the success of the Group’s plans is that we bring the
most experienced management as close as possible to the
business. William Stobart’s role as head of the transport
business allows him to optimise fleet operations and increase
focus on customers. Andrew Tinkler’s expertise and
entrepreneurial strengths are best placed to focus on the
strategic development of the whole Group.
As well as our employees and customers, the Group’s greatest
strength is the management team. The Board has every
confidence in, and support for, the management team and their
ability to generate value and strong returns for shareholders.
Rodney Baker-Bates
Non-Executive Chairman
May 2011
This has been a year of further consolidation and solid performance for the Group despite difficult economic
conditions combined with extreme winter weather. Changing trends in consumer demand and the retailers’
response to that, coupled with heavy snow forcing extensive road and rail closures, presented tough
challenges to the whole logistics industry. What set the Stobart Group apart was our ability to meet these
challenges and to continue to provide service when others simply could not deliver.
Non-Executive
Chairman’s Statement
Rodney Baker-Bates, Chairman