CAR TRANSPORTER LOSSES SLASH TIBBET & BRITTEN'S PROFITS...
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• Continuing losses by Axial, the car transportation division of Tibbett & Britten, halved the group's 1995 pre-tax profits.
Operating profits for the rest of the group rose 19% to £26.2m, but Axial losses of around £10m reduced the overall profits to £12.1m—less than half the 1994 figure, but in line with City expectations.
Axial aside, the group is performing well. Turnover is up 41% on 1994 to £650m and international operations grew by 93%: further evidence that the larger UK distribution firms are looking to the Continent for growth.
T&B chairman John Harvey says: "We have tackled these problems with determination and have not allowed them to check the progress of the group." He predicts Axial will break even this year and will be back in profit by 1997.
Analysts and the markets reacted favourably to the results. One said the figures suggested the Axial problems have been sorted out and Tibbett's share price rose 82p on the news of the results.