Stobart expects results below market expectations; shares drop
(Reuters) - British freight company Stobart Group Ltd expects full-year operating performance to be slightly below market expectations and said its biggest business, transport and distribution, continued to function in an uncertain environment.
Shares of the FTSE-250-listed company, whose Eddie Stobart trucks deliver goods to retailers like Tesco Plc, were down 5 percent at 90.59 pence in early trading.
Stobart said its transport and distribution division, which makes up about 90 percent of the company's overall revenue, would be focussed on controlling costs during January and February, the final two months in its fiscal year.
The company, whose transport and distribution business has been hurt by a downturn in the retail sector, recently diversified into airport support services and biomass energy.
Stobart said it would discontinue its underperforming chilled operation unit, following a review.
The company's stock has lost about 22 percent in value in the past year.
(Reporting By Shilpa Hinduja in Bangalore; Editing by Maju Samuel)
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