Back in the black
Page 3
If you've noticed an error in this article please click here to report it so we can fix it.
City Link is back in profit. CMwould like to offer a hearty slap on the back to all involved.
Its cumulative operating Loss in the past three years 12007 to 2009 inclusive) was a whopping E93.9m, but that figure includes £88.3m in the first two years. However in 2009, City Link's operating Loss was 'just' £5.6m; we say 'just' because it returned to profit in 04. That's good news for City Link, but what does it mean to the road transport industry?
Well, its a shining example of how strong and able management Land dedicated s-.afi can tarn a basket case around. Think back two years, and the question was wnen, not if, Rentokil Initial would sell off its parcels subsidiary: City Link was haemorrhaging cash, and the integration with Target Express was abandoned.
Through clear thinking, innovation, and a customer-first policy, City Link is healthy aga.n: the integration is back on and £2.5m is being invested in a new regional hub.
dnTttedly, the work carried out by City Link boss Stuart Godman and his predecessor Petar Cvetkovic was aided by the Rentokil board adopting a patient approach, although closing the business was never really a viable option.
Not every struggling operator has the resources or patience of Rentokil and its board to help it turn around, but the lessons are there to be learned.
Of course, all City Link needs to do now is stay in the black...
• The next Trucking Britain Out Of Recession survey wilt be online
from Monday March. Go to www. roadtransport.comThritain to take part.
Justin Stanton oe—cv