Stobart puts money into automotive
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STOBART GROUP is working hard to improve the operational efficiency of its automotive division, updating the fleet and introducing new SDC-built semi-trailers to boost flexibility, it told investors last week.
In its six-month results statement, Stobart said the new trailer design would allow its standard tractor units to play their part in helping to meet demand peaks in UK car registrations seen in March and September each year.
This, in turn, would further improve the former Autologic business's efficiency and profit. Stobart also revealed it had closed the former Autologic head office in Northampton as part of its drive to improve the performance of the business it acquired last year.
After a tough start to the year, Stobart Group's six-month results to 31 August showed a solid performance.
Turnover for the transport and distribution division increased 33% to £297m (2012: £223m), with the former Autologic business providing £54.5m of this uplift.
Stripping out the contribution from the now rebranded Automotive, turnover in the six months ended 31 August 2013 was £243m — representing growth of a more modest 9% for the period.
Pre-tax profit at the transport and distribution division was £14.3m, largely unchanged from last year's £14.1m.
The company said the cold spring followed by a heat wave in the summer had adversely affected volumes, leading to significant fluctuations that challenged the fleet's efficiency.