NFC profits soar
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• National Freight Consortium is predicting a 22% increase in turnover and a 31% increase in profits in the year ending in October, boosted by recent acquisitions and strong trading by most of its subsidiary companies.
These full-year predictions follow the announcement of half-year figures to 21 March which show NFC turnover up 13% to £394 million, compared with £349.7 million in the same period last year.
Chairman Sir Peter Thompson says pre-tax profits for the half-year are up 27% at £16 million, compared with 212.6 million last year. The company's trade is weighted into the second half of the year, says Thompson, and he expects full-year turnover to reach £913.3 million, compared with £747.6 million last year.
The continued strength of NFC's trading figures is fuelling speculation that the company will go public in the next 12 months. Thompson admits that a flotation on the Stock Exchange is "inevitable". Chief executive John Mather says that a flotation will be necessary within the next three years, to finance new acquisitions.
In this financial year NFC has already acquired Caledonian Oil (which Mather claims is trading 50% above expectations), George Hilton Removals, the Birds Eye Walls distribution fleet, Alpine Refrigerated Deliveries and American-based Dauphin Distribution Services.
Together these companies should add £99 million to NFC's turnover. The proposed purchase of US removals specialist Four Winds should be completed in July.
Top performer among NFC's subsidiaries in the first six months is BRS, which made a profit of £7.6 million up 33% on the first six months of last year. NFC Special Services's profits rise by 31.5% on the six months, to £5 million. The consortium's American operations produced a 275% increase in profits, boosted by acquisitions from 21.2 million in the first six months last year to £4.5 million in the first six months of this year.
Only National Carriers Roadline among the NFC divisions is trading at a loss, totalling £1.7 million for the first six months, an increase from £1.4 nnillion over the first six months of last year. Mather says the parcels carrier has suffered from volume problems and difficulties in forecasting seasonal demand, but he claims it is now offering good service levels and is shaping up for a complete relaunch in the next couple of months, involving a new company name and a new livery. SPD also has operating difficulties but makes a profit, says Mather.