Axial tightens up as profits reduce in '98
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• by Miles Brignall Axial, the car transporting arm of Tibbett & Britten, is expected to shed subcontractors and might make redundancies after announcing reduced profits on an increased turnover. Last year Axial made a 26.4m profit on a turnover up to 2225.6m—this compares with profits of .27.2m on a turnover of .2156m during 1997.
Speaking as T&B announced its preliminary results for 1998, group chairman John Harvey confirmed that a series of cost-cutting measures are to be introduced to the UK car moving business. Axial's problems stem from the dramatic decline in car sales after the 1998 August plate change, Out this should be eased by the new system of two plate changes a year, says Harvey. "We are talking to people inside the business, along with the unions about how we can reduce the costs," he adds. It's too early to say if there are going to be redundancies.'
However, he was far more up-beat about the rest of T&,B's UK performance. Operating profits were up to almost 220m on a turnover of 2450m, and the group won several contracts during the year. Overall group operating profit was £33.7m, up .22m, on an increased turnover of 21.13bn, but it lost heavily on its South African operation.