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Toleman waits for profit

23rd May 1991, Page 12
23rd May 1991
Page 12
Page 12, 23rd May 1991 — Toleman waits for profit
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/ Troubled car transporter group Toleman Holding is still trading unprofitably — despite an £11.75m cash injection from the sale of its textiles subsidiary Samuel Eden to the Sherwood Group.

It has been forced to make 30 drivers redundant after closing depots at Nuneaton and Bristol; earlier this year it said its policy was to hold on to skilled drivers so that it would be ready to face a revitalised economy.

However, Toleman says that the money from selling Samuel Eden puts it back "into the black" with the Midland Bank. The money is in addition to the £6m Toleman gained from selling land at Hamble Point where another subsidiary, Cougar Marine, is located.

"The revenue from the sale of Samuel Eden has secured the future of Toleman," says the group's managing director, Alex Hawkridge.

The redundant drivers had been laid off for 13 weeks due to lack of work.

After a request from the Transport and General Workers' Union, Toleman finally agreed to redundancy terms to "save further hardship".

"We agreed to let the drivers go because there is no sign of an upturn in the economy," says Toleman, which has recently cut its Brentwood head office staff from 120 to 60.

These, measures follow a deal made with the TGWU last year when drivers agreed to accept a 25% wage cut (CM 18-24 Oct 1990).

The company hopes to end 1991 at least £1rn in profit and intends to boost drivers' pay with a profit share-out.

Toleman believes it can make little progress until the recession lifts and car sales pick up again. "Morale is the most critical issue and it is very low among the workforce," it says.

Tags

People: Alex Hawkridge
Locations: Nuneaton, Bristol

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