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MacB for sale

27th April 1985, Page 16
27th April 1985
Page 16
Page 16, 27th April 1985 — MacB for sale
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Which of the following most accurately describes the problem?

OFFERS are now being invited for MacBrayne Haulage, the Scottish Transport Group's haulage subsidiary which is being privatised.

Deloitte, Haskins and Sells, the chartered accountants acting as advisers to the Scottish Office, have published a summary of the company's financial position and are prepared to discuss greater detail with businesses prepared to make serious offers.

They say that the company, which has a net asset value for 1984 of £980,000, would provide a purchaser with a "unique opportunity either to extend an existing road haulage network or to consolidate and rationalise some routes if already operating in the same geographical area".

MacBrayne is based in Glasgow and runs in the Scottish Highlands and Western Isles. It operates 17 ERF, eight Foden and two Seddon Atkinson tractive units; 19 Bedford and four Dodge Commando rigids; 99 semi-trailers; miscellaneous handling equipment; and 15 shunt units operated on behalf of Caledonian MacBrayne, the STG shipping subsidiary.

The 50 lorries were built be tween 1977 and 1984.

There are also 26 monthly paid and 69 weekly paid staff, the greatest proportion of whom are aged between 26 and 50, and who have between six and 15 years' service with the company.

The 41,000sqft head office and depot complex in Glasgow is the only building of significance which is owned by the company. It rents much of its rural depot capacity from Caledonian MacBrayne.

The staffing levels have been reduced recently following an agreement to transfer some of the haulage company's jobs to the shipping company, and seven drivers' jobs were cut after a new wage agreement was reached on the basis of a 28mph average speed.

Jack McLaren, the general manager, is to retire shortly and will only be available to a new owner for a few months. The company secretary and fleet engineer. are transferring to other STG companies, leaving only the traffic manager of the four top personnel.

Although the company made a £269,000 pre-tax profit and £122,000 after-tax profit on £2.9m turnover in 1983, it only made £90,000 pre-tax and lost £229,000 after tax on £2.7m turnover last year.

Deloittes blame the poor trading last year on manning geared to traffic growth which did not materialise, general competition in road haulage, and uncertainty surrounding the future of the company while the Government decided if it should be privatised.

It also suffered as a result of the 1984 Finance Act, and had to pay £221,000 deferred tax.

It is continuing to trade badly this year at a time when its traffic is historically at its poorest, but the continued uncertainty about its future is blamed for volume continuing to fall.

But Deloittes say the company benefits from operating in an area which is unattractive to own account operators.

Tags

Organisations: Scottish Office
People: Jack McLaren
Locations: Glasgow

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