• Operating profit from TDG's distribution division halved to around
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4% in the first six months to 30 June compared to the same period last year In the transport division, operating profit increased from around 2% to 4.5%.
TDG put the dive in its distribution division's profitability to the loss of four profitable contracts from Harris Distribution and to increasing losses in its Network Logistics business. Two of the four Harris contracts were taken in-house by customers—one being mail order company Index. A third Harris contract with London Electricity Board to distribute electrical goods ended when LEB's retail site in Rainham, Essex closed. A fourth five-year contract was believed to be with Mars Group: this was redistributed to existing warehouses.
The Group says all companies in its transport division except Inter-City Transport are now profitable.
and Network Logistics. And the transport division's loss-making Inter-City Transport is currently undergoing a costcutting exercise to improve margins.
But the City is warning that further cuts are necessary.