Parcels divisions merge to stem further losses
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• Distribution firm Nightfreight is merging its parcels division with its subsidiary parcels carrier Greenline to prevent further financial losses.
Nightfreight promises no driver redundancies from the merger at the end of February„ which is intended to reduce costs and improve efficiency in its parcels sector.
Greenline, which has 150 trucks and six depots, mostly in the North and Midlands, will lose its name in the merger.
The news follows Nightfreight's 1997 results which highlighted a 40% fall in pre-tax profits to £3m. Operating profit at the parcels division was down by £2.24m on 1996 figures.
Nightfreight chief executive Ronald Sullivan says that although the
first half of the year saw a significant loss in Nightfreight's parcels sector, things improved in the second six months. New developments such as postcode routeing helped depot turnround times.
Sullivan says the division will improve further in 1998. A new parcels depot is to be built resulting in 10 new driver jobs. E A management buyout of Coventry-based parcels carrier Target Worldwide Express has been finalised for £174m.