Haulage shares slide
Page 14
If you've noticed an error in this article please click here to report it so we can fix it.
by Sally Nash • Signs that transport firms are being hit by the economic slowdown were confirmed last week when two major players saw their share prices plummet after giving profits warnings.
Tibbett & Britten shares fell by nearly 10% after the group issued a profits warning centred on its UK retail business. Tibbett & Britten chairman John Harvey says the company's retail distribution operation has been going through "the year from hell", with high-street spending running well below expectations due to the poor summer weather.
Lower demand for summer clothing, mineral water and barbecue equipment have all had a knockon effect on the group's UK business, says Harvey. Uncertain prospects in the high street mean that the full-year results "are unlikely to show much advance".
Delivery group Business Post has also been hit, with its share value plunging by almost 50% to £3.27. The parcels firm admits that "earlier sales forecasting assumptions were unrealistic". It warns that this year's profits will only show a slight increase.
The warnings come just two months after BOC Distribution Services was forced to look for a buyer for most of its temperaturecontrolled business for food retailers. BOC blamed long waiting times and delays at regional distribution centres which led to financial problems.
Director David Betts reports that BOC is still in negotiations about a possible sale and is "finalising its position".
Unless a buyer is found 500 staff at four depots stand to lose their jobs.