Hauliers have survived storm
Page 6
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ROAD haulage has weathered the downturn in the economy better than the majority of industries and demand will increase significantly in 1979 and 1980. Provided the NFC companies get into profit through increased rates then all is set fair, says a report issued last week by Jordan Dataquest, Ltd.
The survey, which covers for the most part seem able to as being that simple by NFC 264 companies, states that the operate profitably even if not and the financial restructuring industry is "no longer cheap particularly so. now being planned for the and easy to enter". It says that "An increase in rates should Corporation will alter the state as companies grew larger last have an immediate beneficial of the company's accounts. year there was a decline of 10 effect, and at the same time See News Extra, page 24. per cent in the number of alleviate the pressure of price The Jordan Dataquest vehicles on the road but at the competition on other report is available from Jordan same time an increase of 30 per hauliers." House, 47 Brunswick Place, cent in ton/miles. The position will not be seen London, price £32.
The top ten private companies in the survey are Bayford & Co Ltd; Linton & Hurst Ltd; Sutton & Son (St Helens) Ltd; R. Hanson & Son Ltd; Bernard Brogan Ltd; Bishop & Son Depositories Ltd; Robsons Border Transport Ltd; A. Pannell Ltd; R. Durham & Son Ltd and Turners (Soham) Ltd.
Of these companies both Sutton and Durham are criticised because their accounts appear to be out of date.
Of those whose accounts were up to date in 1977, the highest profit margin is shown by Bernard Brogan Ltd who are,mainly tipper operators in Lanarkshire. The company margin of profit was 11.1 per cent.
, The principal amongst the quoted companies was United Carriers Ltd with 16.4 per cent profit margin followed by Transport Development Group with 9.4 per cent profit margin for 1977.
At April 1978 there were 64 loss makers in the 264 com panies studied. This represented 24.2 per cent as against 22.8 per cent in 1977.
The NFC may feel that criticism of their loss making situation does not tell the whole story. Dataquest looks at NFC's accounts for 1976 but appear to take no regard of the Corporation's peculiar statutory financial burdens.
The suggestion is that if NFC companies increase their rates to cover the loss margin then unfair competition would disappear.
The survey says of NFC: "This continuing loss situation clearly needs investigation, since the independent firms