TDG's £20m profit
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TME TRANSPORT Development Group made a profit before tax in 1983 of E20.98m (1982: E18.33m), says the annual report (CM, March 24). It was a year of great change, with many subsidiaries restructuring, merging and adjusting to the demands of a rapidly changing market and to the pressures set by modern computer technology.
In the United Kingdom, road haulage turnover increased by 6.4 per cent to £119.5m, and operating profit was up by 12.3 per cent to £6.6m.
Haulage rates had not enjoyed the rising demand necessary to move closer to what they should be. "Although there has been evidence of a slow and steady pick up in demand, particularly in the second half of the year, the critical point has not yet been reached," says the directors' report, signed by chairman and chief executive Sir James Duncan.
"But the enterprising and energetic haulier can still make money. The contract hire companies enjoyed a buoyant year's trading and progress was made in the specialised field of distribution, despite the slender profit margins which prevail at present. Most general haulage fleets were busier than in the previous year, and there were some encouraging results from the liquid and powder tanker fleets where a gradual improvement in the chemical industry led to a pick up in demand.
"Specialised heavy haulage was highly successful. TDG now has, in Econofreight Transport, one of the finest heavy haulage businesses in the country. Further substantial additions were made to its fleet of hydraulic-axled trailers and the company is geared to meet a high level of demand in 1984. Land and buildings adjacent to its headquarters are being purchased to accommodate the extended facilities.
"Another business which has grown and developed beyond recognition in the last year or so is that of Tuffnells of Sheffield which has been hard at work establishing a national parcels service. It has extended its network by acquiring small distributors, and by the end of the year was working to the limits of its capacity. Plans are in hand to replace three existing depots with new purpose-built facilities; all should be in full operation by the autumn which is the start of the company's peak season."
Change had meant the disappearance of some familiar names. Glasgow Hiring, Smiths of Eccles, James Paterson Transport, and several other subsidiaries, merged their identities with other TDG companies.