Bio-mass energy lifts profit hope at Stobart

Stobart Group is boosting its energy business and said it is in line to hit fullyear profit forecasts.

the firm – founded with a Guy Invincible four-wheeler lorry in the 1960s – is the number one supplier of biomass in the UK.

It has a 15-year contract to source wood- chips and waste timber, and transports it to renewable energy plants across the UK.

It is building six biomass plants, which are due to become operational by May 2018. In addition two other plants became operational over the past six months.

Stobart, which also owns London Southend airport, does not receive a government subsidy because it only supplies and transports the raw material rather than produce the energy.

ben Whawell has taken up a position of chief executive of the energy division.

the firm said it plans to grow passenger numbers at Southend to more than 2.5m passengers per annum and deliver operating profit of £8 per passenger by 2018.

Chief executive andrew tinkler is in advanced talks with a number of low-cost carriers and other airlines interested in using the airport at peak times.

He said: ‘a particular highlight is the momentum in the energy division.’

the shares increased 6.12pc, or 9p to 156p.