NFC raises profit as market nears
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• Employee-owned transport giant NFC has increased pretax profit 42% to 267 million and announced that public dealing in its shares will start on 6 February.
Its 40,000 employee shareholders — who will be given the chance to sell when dealing begins — were told that earnings per share have gone up 29% to 15.1p in the year to 1 October, and that profit sharing per head will be between 2500 and 2600.
Each of NFC's four trading divisions performed strongly; Transport Division, which includes BRS, Lynx, Tankfreight and Cartransport, made £32.1 million profit. Lynx broke into the black for the first time with a 21.6 million profit, and BRS increased its operating profit by 28%.
Distribution Division's 2.5% increase in profit to 222.3 million was due to high costs of setting up dedicated operations, chief executive Jack Mather explained. NCCS, NFC Contract Distribution, Newsflow, Fashionflow and Alpine come within this group.
Home Services Division, which has Pickfords and US removals company Allied Van Lines, made £20.4 million operating profit.
International profits are now 23% of NFC's profit — only 2% off the 25% target set five years ago for 1990.
Travel and Property Division made 215.3 million profit. Total turnover is up 38% to 21.2 billion and the number of shareholdings in the company has risen from 32,000 to 42,000.
Chairman Sir Peter Thompson said shareholders will be offered one extra rights issue share, priced at 130p, for every eight he or she currently owns.
This means the average worker with 5,500 shares will have to find 2910 to buy the 700 extra ones allowed.