Stobart Group Ld Share Discussion Threads

[garycook] 15/1/2019 02:00

Bernie,Have you been buying STOB from 142p,like me.

[loganair] 11/1/2019 19:59

The loss-making regional airline is to be bailed out by a consortium of three parties, each with their own aims. Virgin Atlantic has a 30 per cent stake in the venture, and wants to feed into the Heathrow and Manchester hubs for its long-haul operations, as well as rebranding the airline; Virgin Atlantic is much more memorable than Flybe. Sir Richard Branson’s airline will more than double Its fleet, with 78 Flybe aircraft to be repainted.

Stobart Group – whose Irish-based airline, Stobart Air, already operates some of its flights under the Flybe brand – wants to boost flying from the two airports it owns.

And a hedge fund, Cyrus Capital Partners, has the remaining 40 per cent share, which it will presumably sell if and when the value of the airline increases.

The parlous state of Flybe is revealed in the purchase price of just £2.2m.

What will it mean for staff?

No-one knows. Pilots say they weren’t consulted. The HQ staff in Exeter will be worried Virgin Atlantic may cut head count at the Devon airport and move some jobs to its base in Crawley, just south of Gatwick.

And passengers?

At present, all operations continue as normal.

While Virgin Atlantic (short-haul) is promising enhanced customer service, there are no promises on routes. The buyers will be looking closely at every link, assessing whether planes, pilots and cabin crew could be more profitably deployed elsewhere.

Changes could take effect as soon as the end of March, when the summer schedules begin.

Looking at the route networks, links from Edinburgh, Glasgow and Aberdeen to the southern half of England and to Belfast City in Northern Ireland look secure, and likewise Exeter and Southampton to the north and west will probably survive. But East Midlands aircraft could be re-directed to Manchester to boost frequency there.

Internationally, feeds to Amsterdam and Paris are likely to increase ahead of the Air France-KLM buy-in to Virgin Atlantic, which will see them taking 30 per cent of the airline.

Southend is likely to benefit from new aircraft and an extended European and domestic network. But some of Flybe’s non-core routes – such as Cardiff to Milan, Doncaster to Alicante and Leeds Bradford to Dusseldorf – may not survive a cull if the new owners continue the current “shrink-to-success” strategy.

What about a new fleet?

It is most unlikely anything will change in the near future, beyond Flybe continuing to return Embraer jets and standardise around the Bombardier Q400 aircraft.

In time, it will depend on what path Virgin Atlantic takes with the new airline – it is possible Airbus or Boeing jets could be deployed on some routes.

[loganair] 11/1/2019 14:37

I understand the Stobart management will be running the new Virgin/Flybe

[trogerswinning] 11/1/2019 14:13

I think this is a defensive move for STOB rather than offensive. Protecting FlyBe and its routes from a competitor.

[gre] 11/1/2019 12:03

Can someone also explain the logic of selling an aviation business with gross assets of £73m and making profits of £13m for a 30% stake in an ailing airline which needs a huge cash injection?

[gre] 11/1/2019 11:34

If Virgin want Flybe to connect into their services at Heathrow and Manchester how will this generate more traffic through Southend?

[ivor hunch] 11/1/2019 10:24

Very important for the growth of Southend Airport - the jewel in STOB's crown. This will become a very valuable asset by 2025.

[loganair] 11/1/2019 10:00

Virgin Atlantic-backed Connect Airways aims to concentrate on simplifying Flybe’s core network and improving performance following its acquisition of the UK regional carrier.

But Connect Airways’ parties have warned that job losses are “likely” as a result of Flybe’s planned combination with Stobart Air.

Completion of Connect Airways’ acquisition of Flybe is expected in the second quarter of this year.

Flybe’s network will be simplified and adjusted to improve connectivity with Virgin Atlantic’s long-haul networks at London Heathrow and Manchester.

[loganair] 11/1/2019 09:55

The take over of Flybe is very important to Stobart as they fly a good number of routes on behalf of Flybe and as Stobart say "It will allow us to continue to work with Flybe and provides an excellent opportunity to continue to grow passenger numbers at London Southend Airport."

[petewy] 11/1/2019 09:46

Thanks Zang Sorry about NAH.

[zangdook] 11/1/2019 07:56

Lose Stobart Air in return for 30% of a Flybe-Stobart Air holding company but have their expenses covered and £10m of 2025 notes generating 800k a year in the meantime (if the thing doesn't go bust)? It's a continuation of the asset disposals in another form, presented as an expansion.

[dendria] 11/1/2019 07:48

Flybe: Cash-strapped airline to be rescued by Virgin-led consortium



I think this looks a better venture than STOB going it alone.

[porsche1945] 07/1/2019 11:02

If you avoid anything Woodford buys you will at least swerve losing at least half your money.

[markyt] 28/12/2018 08:09

Div has been cut to pay for Flybe? and court costs, will be a strong player one day

[john09] 27/12/2018 22:45

Problem is even at today’s £1.40 the Div Yield is now only 3.9% if we assume it’s to be 6p for the foreseeable.

It was the ridiculous 18p dividend keeping the share price toppy and the market didnt believe it was sustainable and so it’s been proven

[garycook] 24/12/2018 02:03

bernie,In time.Markets now at 1999 levels.You need to be patience.It will recover.Also there is an ongoing Court case to settle.If as john09 quote,s STOB are going to a £1.Double up your holding if this level is reached.To bring your average price in STOB lower.

[bernie37] 23/12/2018 12:00

Garycook,you said 250p a while back

[john09] 23/12/2018 11:26

I think 2 months

[garycook] 13/12/2018 03:37

john09,Think you could be waiting a very long time for £1.Bargain hunters now buying up STOB.Great entry for me at 149p.

[john09] 10/12/2018 14:16

My target price is £1

[peea01] 09/12/2018 19:16

More like sub 140 at this stage

[john09] 08/12/2018 11:45

So do we think the new dividend will be just 1.5p a quarter ?

[jonwig] 08/12/2018 11:43

bluemango - did they pick them up from Woodford? He is a bit "forced".

[garycook] 08/12/2018 11:20

barny,Correct.Take advantage of it while it last,like me & Invesco.If you have the Balls.

[bernie37] 07/12/2018 13:34

Graycook it’s looking like 150 not 250.