AB Ports plots a new course

HUMBERSIDE stands to receive a major investment boost from Associated British Ports, whose £600m plan to build a new port at Dibden near Southampton was blocked by the Government earlier this year.

The group had revealed that it would take a write-off charge of £45m on the Dibden project, hitting first half profits.

But the 7% rise in pre-exceptional profits to £65.2m in the six months to end-June was slightly better than analysts had expected. They had forecast £61m-£63.5m.

The UK's largest port operator is investing £44.5m in a new coal facility at the Port of Immingham. The facility, which will be capable of handling up to 7.5m tonnes of coal a year, is the group's largest-ever investment in a terminal development.

Broker Williams de Broe said there is 'nothing fundamentally wrong' with the group. Growth, it added, is to be driven by share buybacks in the short term.

In May, the company extended the £100m share repurchase programme, announced a month before, by a further £30m.

'Trading into the third quarter has been in line with expectations,' said chief executive Bo Lerenius.