Stobart Group PLC (LON:STOB) has started to regroup after a bruising boardroom bust-up with former chief executive Andrew Tinkler.
Two new directors have been appointed, though the group is still looking for a replacement for chairman Iain Ferguson, as well as a senior independent director and another non-exec.
READ: Stobart completes first phase of boardroom reshuffle as it brings in three new directors
Ferguson narrowly kept his job at July’s annual meeting after Tinkler and two sizeable shareholders voted against his re-election.
Subsequently, Ferguson said he would stand down before the next AGM.
New directors
The new board appointments are Nick Dilworth, currently the firm’s commercial director, who has been promoted to chief operating officer.
Also taking a seat at the boardroom table is City PR guru Ginny Pulbrook, who will take up her role as non-executive director in October.
Michael Williamson, meanwhile, has also joined as interim chief financial officer – although he won’t be formally joining the board.
He takes over from Richard Laycock, who chose not to seek re-election at the AGM.
“We have moved quickly to strengthen the board, and are pleased to have been able to appoint such experienced directors,” said Ferguson.
“Nick and Ginny will make major contributions to delivering our strategy. Nick has already supported the commercial progress of the company through his work with the leadership teams of our operating divisions.
“Michael, who has considerable PLC experience, will oversee the group's finance function.”
Airline, airports, rail and biomass
How the business is doing has been overshadowed by the boardroom ructions, but half-year results to August are due on 24 October and should re-focus the market’s attention.
Ahead of the AGM, Stobart said good progress was being made at Southend Airport, where it has just signed a new partnership with Ryanair.
This five-year agreement, extendable to ten, will see Ryanair invest US$300mln and open a base at the airport.
The airline will operate three planes out of Southend starting from summer 2019 to provide 13 routes to eight European countries and six new destinations.
In 2017, Stobart Air, which operates flights on behalf of Aer Lingus and FlyBe, carried 1.7mln passengers, a 9% increase.
Aviation is one of several legs to the business, which also includes biomass power, railways and civil infrastructure, a stake in transport group Eddie Stobart and infrastructure assets that are being steadily divested to support the dividend until the other business can take over in 2022.
By then, chief executive Warwick Brady will have doubled the size of the business, if all goes to plan.
A plan to merge with rival airline Flybe fell through in March, but even without the boost that it would have brought, Brady has reiterated Stobart remains on track to meet its growth target.
July's update said tonnages processed by its biomass arm were up 54% year-on-year as new contracts came onstream while the sale and leaseback of a site in Widnes had generated £25.5mln.
Since the start of August, the shares have rallied 9% to 240.5p, valuing the group at £829mln.