'MG: No recovery yet
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• TDG, the UK's second largest transport group, says it sees no signs of economic recovery and expects the recession to hit performance hard for at least another six months.
"Nothing suggests to us that the recession is coming to an end," says Transport Development Group chief executive Alan Cole. 'Generally our view is that trading will be very difficult in the next six months.
However Cole expressed satisfaction with TDG's results over the past six months compared to the same period last year. "We've slightly less turnover, slightly less capital employed and slightly more profit," says Cole.
TDG's only division in the UK to reduce its contribution was the high profile distribution division which dropped profits by £0.54m to £4.26m on a turnover up ZlOm to nearly £77m. Distribution, which includes Beck & Pollitzer and Harris Distribution, was hit by "very significant restructuring costs" — with more than £800,000 spent on redundancies.
The transport division increased profit by 6% to £2.21m on a reduced turnover of £136.6m, down £32m. "Linkman has improved a bit last year. InterCity has had a fairly difficult six months. Other businesses have improved matginally," says Cole.
The £27.7m turnover storage division increased its profits by 29% to £4.88m, due mainly to the closure of fish haulier Charles Alexander. The other companies, Novacold, Pinnacle and Autozero "performed well". The hire division increased profit by 25% to £2.47m because of its purchase of contract hire business CSL and vehicle hire activities.
TDG is continuing its attempt to stem losses in its French and USA companies. Group finance director Steve Badger has been moved in to assert financial and management control in France. In the USA TDG is still trying to sell Willig Freight Lines.