TDG neared record profit in a 'tough year'
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• The Transport Development Group in its report for the year ended December 31 1971---"a tough year in which to earn a profit," says Sir Reginald Wilson, chairman--reveals that profit before tax amounted to £8,422,000, only two per cent less than the record profit of the previous year.
The contribution made by road haulage was larger than in 1970: last year's turnover was £40,543,000 and pretax profit £3,892,000 compared to £36,944,000 and £3,678,000 respectively.
• Storage and other transport services made a pretax £3,336,000 (1970: £3,251); and exhibitions and engineering a pretax £1,194,000 (1970: £1,649,000).
• States the annual report: "Some road haulage companies found trading conditions more difficult than any encountered since the war. A wilting economy confronted them with an acute shortage of traffic and rising costs just at a time when the licensing changes of the 1968 Transport Act brought an inflow of newcomers to the industry, and own-account carriers were competing for traffic. In the general haulage field severe rate cutting was encountered as hauliers tried to secure traffic at any cost, "Against such a background the solid backbone of contract and specialized traffics, which Group companies have built up over the years, has proved of great value. The companies offering specialized services linked with warehousing or with regular distribution suffered least and were little affected in terms of results though these results were often only achieved by considerable effort and ingenuity.
"Company managements continued to seek out ways of curtailing expenditure and improving operational efficiency whilst at the same time preserving their undertakings in good shape for the upsurge in traffic which will herald a revival of the economy. They have taken the opportunity to eliminate less economic vehicles from their fleets and to bring maintenance and repair work fully up to date, though this has, in some instances, meant that reduced income has had to support increased maintenance costs.
"The construction of new headquarters and terminal accommodation, including maintenance and storage facilities, has been put in hand by Western Transport Ltd and by Runcorn Transport Services Ltd. Williams Bros (Wales) Ltd has built an additional 30,000 sq ft warehouse and a number of other companies are extending depots and developing specialized services and facilities.
"In addition to Parker's Transport Ltd and H. Evers Ltd, which were referred to in the last report, there have been a number of acquisitions. Tuffnells of Sheffield Ltd, which provides a parcels distribution service over a wide area embracing Manchester, Leeds and Sheffield, coupled with warehousing, was acquired in April. Also acquired was Flowers Transport Ltd of York which, with its associated companies, operates some 125 vehicles and has extensive warehouse accommodation. Other haulage companies acquired were W. & J. Riding Ltd based near Preston and engaged in general haulage and Reliance Motors (Sale) Ltd which undertakes the transport of bulk liquids in the Midlands and North of England with a fleet of 41 tankers. In South Wales, Entress Transport Ltd, providing haulage services from a base in Swansea, was acquired in July. All these companies continue under their previous managements."
Overseas companies—in the Netherlands and Australia—had continued to show an upward trend.
A survey of annual reports of the Group since 1962—pretax profit £2,215—show 1971 was only the second year in the last 10 when the profit has not shown a progression of over that of the previous year.
The TDG's 23rd agm will be held at the Great Eastern Hotel, Liverpool Street, London, April 31, 12 noon.