NFC profits rise by 17%
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• Exel Logistics and BRS helped boost parent company NFC's pre-tax profit, which rose 17% to £104.9m in the year ending 2 October.
Exel Logistics pursued its programme of growth with three acquisitions on the Continent. Operating profits increased 39% to £64.9m on a turnover of £713m. BRS operating profits rose 36% to 1232.6m on a turnover of £411.4m— turnover last year was £421.4.
The merger between the two divisions is costing £45m hut is expected to save around £9m. BRS's contract hire and truck and trailer rental businesses produced "adequate" returns.
Lynx, the company's parcels arm, made huge losses of £10.1m on a turnover of 173.5m, compared with last year's loss of £1.5m on a turnover of £80.1m. Lynx suffered operational problems after buying Federal Express's Nuneaton hub last year when FedEx pulled out of the domestic parcels market.
The management of Lynx continue to pursue appropriate corrective action and to examine all options to address the situation," says the company. Chief executive Peter Sherlock declined to comment on what that action might entail. He dismisses last week's press reports that the company is to sell off Lynx as "mischievious".
The company announced a rights issue to raise £263m.