Stobart Group has set its sights on handling 60% of UK biomass. Energy is the logistics firm’s biggest revenue stream and the group expects further growth as new biomass plants are commissioned. It sees potential to manage and operate more of those plants in the future.
Posting full year results to the end of February, the group increased revenue by 2.1% to £129.4m and underlying earnings (Ebitda) by 16.8% to £35m.
Energy earnings increased by 12.7% to £10.2m despite revenues falling by 7.8% to £67.7m.
CEO Andrew Tinkler said the foundations had been laid to deliver long term fuel supply contracts to over 20 UK plants and that its major storage processing sites, supporting biomass plants at Widnes, in which Stobart has a 40% stake, and Tilbury, were now up and running.
“Development of other processing sites at Port Clarence and Rotherham is also underway. A full management team is now in place, focused on professionalising the industry to deliver long-term sustainable supply and management of predominantly recycled wood under long-term index-linked contracts,” added Tinkler.
Deputy chief executive Warwick Brady anticipated “a few challenges” for the business given the number of new developments coming on stream over the next 12 months, but was confident of hitting overall targets.