Business World

Wednesday 22 February 2017

Big freeze costs Aer Arann's UK backer cool £1.5m

Published 22/01/2011 | 05:00

Stobart, the UK transport and logistics group that is providing financial support to Aer Arann, said it incurred a £1.5m (€1.76m) charge as a result of the bad weather in the run-up to Christmas.

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However, the company said it remained confident of meeting full-year expectations.

The company last year agreed to provide about €2.5m in funding to support the launch of Aer Arann services from Southend Airport in the south of England in March.

That funding that was secured as Aer Arann struggled to emerge from examinership, which it did in October.

Stobart said yesterday that it remained on track to open a railway station at Southend Airport, which it owns, in the coming weeks.

In its trading statement covering the period from October 20 to this week, Stobart said that its performance had continued at a rate "significantly ahead" of the corresponding period last year, and that it had secured the majority of its revenue expectations for the next financial year.

Shares in Stobart declined 9pc in one day last October after it issued a profit warning, paring its full-year forecasts due to spending cuts implemented by one of its customers, Network Rail.

Irish Independent

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