Stobart Group Ltd (lon:stob)
STOB – Found A Buyer For Their Rail Division

Stobart Group Ltd Financials

ItemCurrent PeriodPrevious Period
Year20192018
Period12 Months12 Months
Revenue£170m£147m
Earnings
Adjusted Earnings
EBITDA(£13m)(£6m)
Adjusted EBITDA
Statutory Profit(£137m)(£58m)
Adjusted Profit
Total Debt
Net Debt£160m£83m

Commentary History
Stobart Group Ltd Share Price
Grade:The Orange Grade - Shares That I Think Show Promise With A Few Caveats.
Title: STOB – Found A Buyer For Their Rail Division
Company: STOB - Stobart Group Ltd
Share Price Then: 25p
Author: Ian Smith
Date: Mon 27 Jul 2020
Comments: Stobarts have gotten the Rail Division off their books and seeing at it was a loss making division the fact that they announced it sold for one thousand pounds £1,000, plus possibly an extra £2.9m isn’t great but under the circumstances probably the only option.

If none of the £2.9m appears then this will be a loss of around £9m, so this is historic share holder money lost, about a quarter of the group’s revenue gone but no losses to drag down aviation and energy, while the group still has it.

Any payment that helped to bring debt down would have welcome, even if the £2.9m does appear it won’t have much of an impact on around £168m

The recent share placing unfortunately doesn’t seem to have stabilised the price, probably in part because the government seems to have no policy on air travel.
Read Count/ID: 98/13166

Buy/No Buy In A Nutshell
NegativesHigh debt, recent share issue and COVID affecting the now core aviation division.
PositivesA bit of a disaster recently but a very solid possibilty of success as focusing on its own airports and related services more generally. Rail division recently sold/given away.
Initial Review Price26p
Last Review Price26p
Last Review Date27-Jul-2020
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