Lorry loss slows BL's recovery plan
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TRADING losses of £74m last year by the Leyland Group hindered BL's recovery programme, but the company still hopes to break even in 1983 and be on a healthier course by 1984.
Announcing the BL preliminary results in London last week, chairman Sir Michael Edwardes pointed out that while BL Cars' 1980 trading loss of £283m had been reduced to £115m, and the BL trading loss as a whole was reduced from £293.9m to £244.6m, the Leyland Group commercial vehicle division's loss rose from £30m to £74m, The BL net loss fell from £535.5m to £497m.
In fact, the United Kingdom trading loss, which deputy chairman David Andrews refused to divulge, was even higher, and if
was overseas operations, notably the Ashok subsidiary in India, which helped contain losses as far as they were.
Sir Michael said he was certain that once the restructuring of the commercial vehicle activities is completed at the end of this year, there will be no need for further demanning at BL, and he said that it was not necessary for the company to draw on additional Government funds beyond the level already agreed for last year and this year.
Sir Michael, who confirmed that he intends to leave BL at the end of this year before, as he put it, he becomes a handicap to the company, said that BL is aiming for break-even on trading figures next year, and for break-even at CONTRA-FLOW working on the M6 in Staffordshire will apply from April 15 until the Spring Bank Holiday at the end of May.
It will affect the section between junctions 15 and 16, and vehicles over 9ft 6in wide should follow diversion signs. If drivers require a police escort, they should contact the police on Stafford (94) 57717. pre-tax level in 1984.
But he said that if the company does make a loss of "a few millions" in 1983, he would still regard that as being on target in the circumstances.
He attributed the turnaround in BL's fortunes to such decentralised management as that which placed Sherpa van sales and production in Freight Rover's hands.