House slump hits NFC
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• Pickfords profits have fallen by several million pounds because high interest rates have depressed the house market.
At last week's interim profit announcement Sir Peter Thompson, chairman of Pickfords' parent NFC, said there were fewer house moves in the UK during the first quarter of this year than last year, with the South East being hit particularly hard.
Thompson also reported that the closure of SDP and GDL in the group's distribution division would result in some job losses during the next few months. He said that most of the company's business was being switched to dedicated contracts within other NFC firms.
Some contracts have been lost, including the Black & Decker and Whitbread deals worth more than 230 million over five years.
This week Lovrfield announced a new contract with Ritter Chocolate which was previously held by GDL.
But despite the gloom in the home moving market and in NFC's travel agency division, pre-tax profits in the 24 weeks to mid-March have increased by 55% to 232.6 million, on turnover of 2647.5 million, These figures have led the company to upgrade its "best view" for the results pre-tax profits from 287 million to 289 million.
Sir Peter said that most of the group's workforce have resisted the temptation to make a "quick buck" by selling shares in the flotation. Employees hold 101 million shares — 28% of the total Another 51% is held by former employees, pensioners and private investors, leaving 21% with institutions.
El NFC launched Exel Logistics — its new-look distribution division. Headed by Robbie Burns, Exel Logistics aims to become a world-wide brand. Burns says:"The creation of Exel Logistics underlines our determination to be recognised not only as the UK leaders, but also one of the world's leading logistics providers."