TO Group profits up15%
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• Tibbett and Britten Group has bucked the recession with a 15% increase in its pre-tax profits. But while reorganisation and foreign developments are on the way, TBG expects this year to be tough.
Turnover for the year to 31 December 1991 was up 16% to £181m and pre-tax profits rose from ,R.11.7m to £13.5m. This was despite some hard going in the fashion distribution market where trading volumes in the second half of 1991 were lower than expected.
Reorganisation is expected in the next few months to reflect TBG's diversification and international interests. The group is boosting its fashion distribution with the purchase of Sears Womenswear distribution and Scorpio International's client base_ Other target areas include DIY and perfumes distribution, and the group also has TBG Britten Group Canada.
Expansion in Portugal and South Africa, through company purchase or contract growth, is expected soon.
While chairman John Harvey believes growth should be good in the medium term, he warns: "1992 will not be an easy year and the rate of profit will be con ditioned by the state of the UK economy and the speed of recovery within the fashion logistics operation."
TBG's 6,600 employees operate the Clothing and Textiles Division, which includes Marks & Spencer work; the Lowfield (Grocery) Distribution division; Tibbett and Britten (Personal), and Tibbett and Britten (Consumer), where the largest contract is for DIY retailer B&Q.
TBG spent £14m in 1991 on acquisitions, fleet modernisation, warehousing and data processing centres and says it is in "sound financial health" with no borrowings.