Lex to axe lorries?
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EX SERVICE this week Jive a clear hint that it wants ) sell off all its transport usinesses when it announced ic £24 million sale of its Lex filkinson parcels subsidiary Federal Express, the 'orld's largest express parcels irrier.
It sold Wilkinson, which lade a £3. I million operating rout on turnover of £40.7 last Friday. Federal is been using Wilkinson to indle all of its UK deliveries tside London and Maladiesr.
But of as much significance the fact that Lex, in a statetent issued to announce the .le, makes no reference to iy defined future for its her transport businesses, -hich include the Systemline intract distribution company ved off last year from Wilnson and Bees Transport of inckley.
It acknowledges that the .ansport companies im-oved their financial pernuance, but adds: "Given le opportunities available in le growth of electronic cornanent distribution and SUCCeSS ill 1 a1.lt01110t1 VC distribution and leasing businesses, Lex Service has decided to concentrate its resources towards long-term development of these activities."
Lex will not say that the other businesses are for sale, but it is doing nothing to deter anyone from thinking that they are.
For United States-owned Federal, which already has a ti..2 billion-a-year business and has a hub air depot in Brussels, the .deal gives it one of Britain's most automated and extensive parcels networks. It is keeping the Wilkinson name.
Its six-year-old parcels hub depot at Nuneaton, which uses automatic tracking equipment and is a distinctively styled building, was modelled on Federal's hub in Memphis, Tennessee.
Federal also gets ownership of Wilkontrol, the computerised consignment monitoring and invoicing system developed by Wilkinson over the past nine years, and which has already been expanded to handle Federal's delivery documentation requirements.
The relationship with Federal was described last year by Wilkinson managing director Colin Millbanks as "very friendly and informal".
Millbanks and the remaining management and workforce at Wilkinson are being retained.
Federal's £23.7 million covers 1:4 million for the sale of Wilkinson's share capital. £5.5 million for property owned by Les Services,. and 1:14.2 million for an inter-company debt owed by Wilkinson.