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Chief Executive Officer’s Report
I am pleased to report that the Group continues to trade well
with new business wins and profitability growing in line with
management expectations for the current year and beyond,
despite the economic challenges and tough operating
environment. The full year’s figures show an increase in
turnover, up 11.8%, largely due to the ongoing strength of
our transport and distribution business, with Eddie Stobart
Limited (ESL) winning significant new contracts such as AG
Barr, Tesco and Britvic.
The Group has been under pressure from all sides including
both cost inflation and the customer, who in turn has born
additional costs as fuel prices continue to rise. However, our
customers have realised how well our business model is suited
to them as we work together to focus on reducing waste in
the system, to mutual benefit.
At the start of the financial year in March 2010, as well as
winning new contracts, we began our joint venture in
biomass with AW Jenkinson. Twelve months later, at the start
of the new financial year, we have successfully integrated the
new business and have acquired the remaining stake in the
biomass venture. We have also secured funding for significant
investment in our estates and airports businesses.
Challenges
One benefit of the recession has been that it has prevented
us from becoming complacent and forced us to concentrate
on where we can reduce costs. This year we have taken
significant steps to tighten up on our cost base, pass cost
savings on to our customers and by working with them to
reduce the waste in the industry.
The recession has also brought with it increased instability in
volumes in consumer buying, with marked peaks and troughs
putting pressure on our logistics systems. This has gone some
way to drive our decision to divide our operating divisions into
smaller units, allowing us to manage each one more closely
and in greater alignment with the customer. Again, this is
allowing us to align our services with customer forecasts,
improving utilisation and reducing waste.
Successes
We have completed the initial phase of development at the
Mersey Multi-Modal Gateway. Our aspiration is to make the
site carbon neutral by the middle of the decade, through
Stobart’s new biomass venture with AW Jenkinson, waste
recycling at the site and by facilitating more collaborations
between retailers and manufacturers using the facility. This
will help significantly reduce UK road distribution miles.
We have had a strong year in the development of our
business in Ireland. Having recognised that customers wanted
a logistics solution in Ireland, we bought a trailer business
from TDG three years ago for £0.25m. The Irish business is
now one of the country’s leading transport operations with
turnover in the year of £25m.
Developments at London Southend Airport have been
substantial and we consider it a considerable achievement to
have brought the project on as far as we have in the time
available. A large part of the building works, including the
new control tower and the rail station, have been completed
and approval of plans to extend the runway was granted in
April 2010. Completion of the runway extension, and the
airport's congestion-free location outside the London air
traffic control area, make it an ideal location to meet the
demand for European business and leisure travel. The runway
extension will also allow London Southend Airport to play a
major role in handling visitors to the 2012 Olympic Games.
The Group continues to benefit from the strength of its
brand and we are fully conscious of the commercial value
inherent in maintaining our brand values across the Group,
particularly good service, efficiency and attention to detail.
Our brand reassures clients that we will deliver their goods
at the right cost, putting us in a strong position with both
clients and suppliers. The ‘Eddie Stobart’ brand in particular
has had a strong year with the success of the Channel 5 TV
series, Eddie Stobart: Trucks & Trailers. It has helped to
showcase the business to a whole new audience and our
promotional department has seen associated benefits with
sales of merchandise reaching record levels.
Chief Executive
Officer’s Report
Andrew Tinkler, CEO
The Group is now entering an exciting phase of delivering on the full value potential in the various business streams.