BRS is NFC hire arm
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by Amanda Bradbury • BRS, formerly one of the top five distribution companies, will be solely a contract hire and truck rental provider following parent NFC's restructuring of transport and logistics.
When restructuring is complete Exel Logistics will be responsible for logistics and transport services. NFC is not saying when this will be, but a third of restructuring provision was spent in the six months to 16 April; management has already been integrated; and sites are in the process of being reorganised.
NFC's half-year results, published last week, show no benefits from the merger of the old BRS with Exel as yet but it is expected that millions of poundsworth of savings will start to show through next year.
Transport & logistics, including Exel Logistics, BRS and Tankfreight, reported flat turnover in the six months at £444m; operating profit was static at £ 30.3m and new business gains were scarce, adding 1% to revenue in the six months compared with 6% growth in the first quarter. But key account management and a new system of sector sales teams are helping the division win new contracts: these will benefit interim results next April (see panel).
The group says its parcel carrier Lynx will start to break even by the end of NFC's financial year on 30 September: the company lost £4.2m in the first half compared with £7.3m in the same period last year.