Cut-back on Euro sites
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by Karen Miles • McGregor Cory is withdrawing from owning its own facilities in three major continental markets in contrast to the tactics of most other large distribution companies.
The expected sale of its lossmaking warehouse businesses in Belgium and the Netherlands— which will follow this summer's sell-off of its shareholding in the German lossmaking operator Oceangate will mean that McGrego!' Cry will remain with its own itssets only in the UK. Spain and France.
Ocean Group, the company's parent, says there are no intentions of buying other diitrilitttion companies within Ger
many, the Netherlands and Belgium. The continental disposal programme comes as Ocean Group attempts to improve the profitability of its distribution company.
In results for the half year to 30 June 1996 posted last week, McGregor Cory made an operating profit of just £700,000 on a turnover of £53.2 million and from capital assets worth £70m.
Ocean say McGregor Cory's performance will improve as the new management team improves the use of warehouse space and increases business volumes—there were 35 new business wins for the first six months of the year compared to five for the same time last year McGregor Cory is also to combine with its sister company, the freight forwarder MSAS, to tender for international distribution work. Ocean Group does not rule out a merger between the two in the long term.