NFC set to review Lynx • NFC is to review
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its loss-making parcels delivery arm Lynx this year, which could lead to redundancies, chief executive Jack Mather says. The 1,200 vehicle subsidiary helped drag its transport division's turnover down 6% in the first quarter of this year compared to the same period last year.
"NFC will have to cut costs in those parts of the business which are particularly hit by the recession," says Mather. Priority will be given to reducing overheads at Lynx, which started losing money last year.
Mather blames pressures on volume, prices and operational difficulties at a hub system introduced in Nuneaton last August to replace a branch to branch trunking system.
However the transport division boosted operating profit by 37% to15.5m on a 1145.6m turnover in the 16 weeks to 23 January 1993 BRS's truck rental and Tankfreight business both increased volumes.
Exel Logistics showed the strongest divisional growth. Its first quarter operating profit rose 48% to 117.5m on a turnover which increased by 25% to 1219.3m.
The home services division increased turnover by 20% in the first quarter although operating profit was up only 7%.
For the rest of the year NFC predicts it will make between 195m and £100m pre-tax profit on a turnover of 11.8-1.95bn.
NFC shareholders will get free one share for every one bought from June, instead of the current two free shares for every five bought.