Stobart woes
The reduction in based aircraft and overall flights is having a severe effect on the Stobart share price. Stobart shares closed at £1 yesterday, a huge fall from the £1.55 earlier in the year when the markets believed the 2m pax predictions. Now that the news is out there that pax numbers will be below 1m, the market is voting with its feet. It doesn't help the Stobart cause that the directors are proposing to move from incentive based pay to huge fixed salaries at a time when performance is poor.
On the upside there is no need for further investment at Southend so the shocking performance of the share price (which will limit Stobart's ability to raise capital) will have little effect down South. I suspect however that the group might reconsider the timing of the Carlisle redevelopment.
We will know more about the results at SEN when the interim group results are published week after next.