Edison Investment Research - Esken Limited (ESKN) Outlook: Focused on growth divisions

Report

Edison Investment Research

Outlook: Focused on growth divisions

Stobart's partial disposal of the T&D division to DBay provided a key inflection point for the group, allowing debt to be reduced and freeing up capital, and management focus to invest in its growth divisions. The deal followed the strategy to realise shareholder value from the group's mature businesses, which has delivered a c Â£175m net increase from the division since listing in 2007 after a 51% sale for a transaction value of Â£280.8m. The continuing business will be structured around infrastructure and support services with management now clearly judged on delivering growth. FY14 results only partially reflect this transition with T&D included as discontinued and the balance sheet transformation not yet fully reflected; good underlying progress was seen across the retained businesses.

11/06/2014 13 EN

Underlying

Esken Limited

Stobart Group is a U.K. infrastructure and support service business and has investments in a national property and logistics portfolio. Co.'s operating segments are: Stobart Energy, which supplies sustainable biomass for the generation of renewable energy; Stobart Aviation, which operates commercial airports, airline operations and leases aircraft; Stobart Rail, which delivers internal and external civil engineering development projects; Stobart Investments, which holds a non-controlling interest in a transport and distribution business; and Stobart Infrastructure, which focuses on management, development and realization of property assets and investments in biomass energy plants.

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GB00B03HDJ73 London Stock Exchange United Kingdom

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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