- London Southend Airport owner Stobart Group said it would cut its dividend as it put more cash aside to invest in its business.

The company, which is part of a consortium that is acquiring regional rival Flybe, said it would now move to a twice-yearly dividend made in equal payments of 3p per share.

'Stobart Group continues to review its capital requirements,' the company said.

'The objective is to ensure that the company can accelerate and deliver its ambitious plans to fund future growth and shareholder returns from operating cashflow on a sustainable basis.'

The majority of the group's planned investment would be deployed at London Southend Airport to put in place the infrastructure required to serve up to 10m passengers per year.

In the company's financial year through February, passenger volumes at the airport jumped by 33% to 1.5m.

'The company continues to evaluate both the quantum of the investment required and the opportunities to fund growth through the disposal of non-core assets,' Stobard added.

'To that end, Stobart Group has recently increased its available cash resources to support its growth plans through asset sales and the placement of shares on 11 January with Cyrus Capital, generating £24.7m, following the announcement of the recommended cash offer for Flybe.'

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