TDG profits hit by margins IBDospsaerstsbudyivoln
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• Lower margins in Transport Development Group's transport division and a £12m provision for closing down its French general haulier have reduced the group's interim profits.
But chief executive Alan Cole says he is confident that the Group will "have a better second half than the first" and will continue to develop specialist services.
He hopes to buy two small companies in the UK "as bolt-ons to existing businesses".
UK profits for the six months to 30 June rose by 9% to £15m. However, group profits fell from £18.5m to £18m on a .Z276.5m turnover because of poor performance on the Continent, particularly in France. The Group acted swiftly to stem losses in May by selling the French arm Translittoral to competitor Norbert Dentressangle—a provision that cost £12m.
L It is not yet clear if Leyland Daf will continue to be one of TDG's preferred suppliers of heavy trucks.
Cole says other manufacturers have been invited to submit details of their vehicles and dealer networks: he believes that these support facilities are "more important in some ways than the kit they produce".
Volvo and ERF are TDG's other preferred suppliers. • The profitable spare parts division of the former Leyland Daf operation has been sold to a management buy-in team in a deal worth over £50m.
Multipart Distribution, based in Chorley, Lana; has been bought by a group led by Alan Simpson, former managing director of Land Rover Parts. He is backed by Les Wharton, former main board director of Rover, and Dennis Benson, ex-managing director of the Chorley parts arm. Simpson promises: "The buy-in secures the future of parts distribution from Chorley."
Multipart, formed in July to take over the business of Leyland Daf's parts business, had a 1992 turnover of more than £140m. It has long-term supply contracts with Leyland Daf Vans, Leyland Trucks and Daf Trucks.
Two remaining Leyland Daf operations are still in receivership but the Albion axle factory in Glasgow and the Leyland components plant in Lancashire are expected to be sold soon.