STOBART, the Warrington-based haulage and property group, is to acquire 18 industrial properties in a deal worth £12.35m.

The group also confirmed in a trading update today that it is on course to meet expectations for the full financial year.

It confirmed today that its subsidiary Stobart Estates will purchase the properties from W. A. Developments International in a deal involving the acquisition of the entire share capital of WADI Properties.

Stobart will pay £5.15m in cash with the remainder being new Stobart shares.

The properties, known as the Moneypenny portfolio, comprise a mix of industrial, commercial, retail and residential properties mostly in the South East of England.

Today's deal was outlined at the time of Stobart's share placing last year.

W. A. Developments is a company controlled by Stobart chief executive Andrew Tinkler and chief operating officer William Stobart.

Stobart's financial director Ben Whawell and deputy chief executive Richard Butcher are also directors of W. A. Developments and WADI Properties but Mr Whawell and Mr Tinkler took no part in the board decision to proceed with the transaction.

Stobart says the deal will enhance the group's earnings per share and generate free cash flow of more than £2m a year.

Rodney Baker-Bates, non-executive chairman of Stobart, said today: "This portfolio will both diversify and strengthen our existing property portfolio.

"We have the management capability within the group to improve both the income and capital performance."

Meanwhile the group said in today's update: "In trading, overall the group expects to meet expectations with some divisions performing ahead and some slightly below expectations.

"The board remains confident of delivering the strategic plan and in the medium and long-term future of the group."

Its air division will open the group's London Southen airport on February 28, with the first Easyjet flights starting at the beginning of April.

The biomass division is exporting "significant volumes" which continue to build and several UK supply contracts are under negotiation.