Stobart Group has raised £100 million in a share issue as the company seeks to pivot toward aviation.
The group, which owns Southend Airport, said it requires additional liquidity to fund its short-term cash obligations and to enable it to build a strong foundation from which it can return its aviation business to growth.
David Shearer, chairman of Stobart Group, said: “We are delighted to have received support from both our existing shareholders and new investors for our equity issue, which will place the group on a sound financial footing going forwards.
“On behalf of the board, I would like to express my gratitude to those who have provided their support.
“We look forward to repaying their trust in us by delivering on our strategic objectives in the coming years.”
New shares were sold at 40 pence each.
Recognising the changes in the economic and social environment as a result of the coronavirus (COVID-19) pandemic, the board has refined its strategy to focus on aviation.
At London Southend Airport, the group will design and implement an improved passenger experience for post-Covid 19 travel, making use of significant unused space and technology to enhance passenger confidence, while providing a cost-efficient base of operation to airlines.
The company will also look to realise value from its energy business, which is starting to benefit from a restart in the construction sector.
The board believes the business is likely to be attractive to strategic partners and infrastructure investors.
Stobart Group will look to extract money from the business over the next 18 to 24 months.