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Profits drop as Plaxtons buy Kirkby

27th December 1986
Page 15
Page 15, 27th December 1986 — Profits drop as Plaxtons buy Kirkby
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Which of the following most accurately describes the problem?

• Scarborough-based coachbuilder Plaxtons (GB) saw a 44% fall in pre-tax profits in the year to September 28, but the company is confident of an improved performance in the present year.

The overall profit figure of 2732,000 compares with 21.31 million in the previous year. Despite the drop in profits, however, turnover rose by 14.32% to 236.95 million Plaxtons' directors are predicting a reversal of the trend of depressed results in the coach division this year, together with continued profits in the service division and a rise in profits in the building section.

In the bodybuilding subsidiaries, Overton and Reeve Burgess, production is likely to continue at full capacity, fuelled by the high demand for minibuses — but Plaxtons' directors warn that increased competition in the market may affect margins.

▪ The Kirkby Group, which Plaxtons agreed to buy this week for 28.5 million, made pre-tax profits of 2622,000 in 1985, and is expected to produce profits of around 21.2 million in the present year. Two directors of Kirkby, David Mathews and Colin Cowderry, are to join the Plaxtons board.

Plaxtons' original Seamer Road works is currently being sold and should produce an extraordinary profit of about 21.4 million for the year.


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