Southend Airport owner sees shares plunge as it sinks into red
Southend Airport owner Stobart Group made an £18.8 million loss during the first six months of the year, after making a profit of £111.6 million during the same period of 2017.
As a result of the news, shares in Stobart, which also owns Stobart Aviation, plunged more than 6%, making it the worst performer on the FTSE 250 index.
However, last year’s figures included £123.8 million from the sale of its 49% stake in Greenwhitestar Holding.
During the six months to the end of August, Stobart’s aviation business made a pre-tax loss of £2.7 million, compared to a profit of £3,6 million in the first half of 2017, but this year it ploughed £18 million into developing routes from Southend Airport, including flights by franchise operator Flybe.
As a result, passenger numbers during the first half of the year climbed 37% to 838,742.
Its deal with Flybe is due to end by 2020 as the airport develops new links with other airlines, including easyJet and Ryanair.
Chief Executive Officer Warwick Brady said: "We have remained focused on operational progress in our Aviation and Energy divisions, which have both performed well in the period.
"Having invested in the infrastructure for these divisions, we are now well placed to accelerate our commercial growth plans and demonstrate the value of the group’s excellent operating businesses."
Stobart is involved in a legal dispute with former chief executive Andrew Tinkler who left the group in June after it accused him of jeopardising the future of the group. Tinkler denies wrongdoing, insisting he was removed for no good reason.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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