NFC's Watson still pessimistic
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• NFC, the UK's largest transport operator, remains deeply pessimistic about the UK economy despite producing full-year profits of £93.7m — well within its forecast of £90-95m.
Chairman James Watson, describes the result as a "spirited performance" but adds: "There is little sign of improvement in the UK or US economy."
The £93.7m pre-tax profit comes after deducting £.3.4m for employee profit sharing. The result is a 4% slide on 1990 (Y.97.7m).
NFC blames the drop on a poor performance by its property division, Hyperion, which tumbled from a £26.8m profit in 1990 to just £6.9m last year. The £11.5m invested in a project at London's Kings Cross has been written off.
However, the group's core businesses — Logistics,. Transport and Home Services — showed an 11% increase between them. Exel leads the pack with a 21% rise; more than a third came from overseas business. Exel won £86m worth of new business, including a Superdrug contract in the UK.
Job cuts continued at NFC with numbers falling 5% to 33,000, costing £9m in redundancy payments. Exel bucked the trend by taking on 1,136 staff. Vehicle numbers fell from 17,278 to 15,000.
Chief executive Jack Mather says: "At best we are bumping along a corrugated bottom." But he adds that NFC will continue to expand "by making precise rifle-shot acquisitions of small companies". It spent £22.4m on acquisitions last year.
The group sees further opportunities in waste management; it recently signed a £14m contract with Manchester City Council to manage a landfill site.