NFC profits up 80pc
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THE NATIONAL Freight Consortium achieved an 80 per cent increase in pre-tax profits for the first half of the current financial year.
For 24 weeks, to March 23, the pre-tax profit was £9.9n1 — for the 25 weeks, or half year, to March 24 last year, the figure was £5.5m.
The NFC has also announced a second interim dividend of 0.6p per share net, which makes a total of 1.16p per 10p share for the half year. Earnings per 10p share were at 5.22p compared with 3.31p last year.
The "fair value", which is the price at which the NFC shares will trade at on the June 7 dealing day, has been established at 82p per 10p share.
The NFC says that the new "fair value" means that the
original holding in February 1982 is now valued at £12.40.
Trading activities caused most of the increased profit, the NFC says. Turnover rose from £289m last year to £335.5m for this half year.
And while redundancy payments remained constant for the two half-year periods at Limn, profits from the sale of properties rose to £2.7m for this half year; for the half year last year, £1.8m was raised this way. But the NFC argues that the increase in bank interest rates on borrowing meant that interest payments were £400,000 higher than last year's half year, at £5.9m.
Some extra profit came from the NFC s American company, Merchants Hime Delivery Service, although most of the other companies at home and abroad traded better than last year.
In this half-year steps were also taken to tackle the problems of the loss-making parcels group, the NFC says.
The restructure of the group will include the loss of 860 of the 3,158 staff at Roadlinc.
• NFC-owned Pickfords Removals has acquired the New Zealand firm Intermove, in an attempt to increase its expansion in the Pacific.
The Auckland-based company is now to be called Intermove Pickfords, and will continue to specialise in international removals. Intermove is the fourth Pacific base to be
set up by Pickfords in di past three years.
• Following the announce ment of the restructuring o SPD and BRS in the NR Distribution Group (CM May 18) a new transport an' distribution consultancy calle. NEC Consulting Group ha been created.
NEC Consulting Group i made up of BRS Consul Laney, and the forme planning and development de partment of SPD.