TRANSPORT group Stobart today said it will embark on a period of delivery after several years creating the basis of a diversified new business structure.

The group, which employs about 1,000 staff at its Warrington and Widnes road, rail and sea transport hubs, announced an 11.8% increase in turnover to £500.4m in the year to February 28, although pre-tax profits slipped from £33.3m to £29.5m, impacted by the severe weather conditions last December.

However, chief executive Andrew Tinkler said: “We are entering an exciting phase of Stobart’s development.”

A share placing earlier this year raised £115m and he added: “We have spent the last three years building a strong and diversified business. With the additional £115m of funding we now look forward to delivering the inherent value in our business.”

He announced a new five division structure for the group, comprising transport and distribution, estates, air, biomass and infrastructure and civil engineering.

Mr Tinkler said the Eddie Stobart transport operation, which represents 85% of group turnover, will remain at the heart of the business, but added: “The new structure will clarify and sharpen the focus, strategic aims and value of each part of the business.”

Last year Eddie Stobart improved revenues from £381.5m to £449.9m and delivered £33.6m of underlying pre-tax profits compared with £25.6m.

This was due to new contracts including a major chilled deal with Tesco at its Widnes hub and drinks group AG Barr, as well as improved volumes with Unilever.

In March last year Stobart set up a joint biomass venture with AW Jenkinson, which it now owns in total, and which it will build with the development of new biomass plants including one in Widnes, using Eddie Stobart to transport timber to the sites.

The air division, including its freight base in Carlisle and London Southend Airport which it hopes will handle up to 2m passengers a year, saw revenues rise from £6.6m to £6.8m, although profits remained static at £200,000.

A new control tower and rail head has been completed at Southend which is bidding to handle visitors to the 2012 London Olympics.

Net debt has increased to £156.1m from £96.8m due to investment at Southend and the biomass venture, but Mr Tinkler said: “We have set out an ambitious and exciting strategy to take each part of the Stobart group to the next level and make sure each division meets its targets.

“We see nothing in the plan that cannot be achieved and look forward to demonstrating value creation in the near term.”

Shares in Stobart Group remained steady at 124.6p in early morning trading, a fall of about 1.11%.