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136 
P STOBART GROUP
Page 8
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Pay-as-you-go' set to make Stobart Group recession-proof
By Roger Brown STOBART GROUP claims its "pay-as-you-go" business model should help it remain strong in the present economic downturn.
Andrew Tinkler, chief executive officer for Stobart Group, tells CM that the approach — where customers are billed for the services they use, rather than quoted a fixed price — is the correct one for the current climate.
Tinkler adds: "The pay-as-yougo system is working well for us; if a company's business declines, then the amount they spend with us will decline.
"Our customers only pay for what they use."
Around 60% of the group's business involves carrying basic products such as food and drink, and Tinkler is confident that volumes will remain steady throughout the downturn.
He adds: "Well-run companies that transport food and drink arc in a stronger position than those involved in the likes of the automotive sector because even through a recession people still need to eat.
The group also charges its customers — which include Tesco, Homebase and Coca-Cola — extra if the loading or unloading of a vehicle runs over an agreed time.
Mark O'Bornick. transport analyst from Analytiqa. agrees that the hauliers transporting food and drink should suffer less during the economic downturn than those which specialise in other sectors.
He explains: "The automotive sector is obviously suffering at the moment, and so is the chemicals sector.
"In a recession, people tend to cut back on luxury items such as cars, fridges and cookers."
Tinkler adds that the firms Stobart purchased last year—James Irlam and Innovate — are set to be fully integrated into the group by the end of March.
• See this week's investigation on page 20 for more tips on how to survive the economic downturn.