A vintage year for TDG
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• Transport Development Group made "steady progress" in 1987, ending the year with pre-tax profits up by more than 10% to £43.5 million and turnover up to 2548.6 million. .
TDG had "a good year in the UK", reports managing director Jim Lockhart.
Speaking at the announcement of the company's 1987 results, Chairman Sir James Duncan reported that TDG is confident about its prospects for 1988, "and is well-placed to meet the future — whether boom or recession".
Last year, TDG boosted its earnings per share by almost 17% to 10.05p, while dividends per share also rose, by more than 13% to 8.5p. Return on capital during the same period, says Duncan, was "at an all time peak of 20.3%".
In 1987 TDG's British road transport companies increased their pre-tax profits by over 20% to £13.5 million (211.2 million in 1986). Turnover also rose, to 2184.3 million.
Not all of TDG's transport companies are making money, however. Duncan reports: "There are still a number within the group that could show further improvement," but he says that where companies are showing insufficient return on capital "they will be helped".
Along with the rest of the UK haulage industry, TDG is experiencing a "distribution revolution", says Lockhart. Although it "offers tremendous opportunities we have enjoyed considerable business because of the changes".
Most of TDG's haulage and distribution business comes from customers with longstanding, renewable contracts with TDG companies.
Its second major revenue source is contract distribution, followed by general spot hire work. Lockhart reports that only four or five TDG companies are still engaged exclusively in spot-hire haulage work.
TDG plans to continue its expansion both in the UK and overseas, and is looking at possible acquisitions in Spain, Portugal and Germany. Profits for 1988 are already ahead of last year's level.