P kSSOCIATION RESULTS
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FTA increases surplus despite falls in income and members
justin.stantontarbi.co.uk THE FREIGHT Transport Association (FTA) delivered a robust financial performance last year, actually increasing operating surplus and retaining surplus. despite modest declines in income and the number of members.
Income slipped 5% to £24.9m in 2009 because commercial activities fell 6%.Theo de Pencier, FTA chief executive, notes that while its seminars and briefings were 14% more popular than in 2008 and that regional freight councils enjoyed increased member participation, "calls answered by the member advice centre were down 9 `Yo.Vehicles inspected during the year while still in excess of 100,000 were down around 15% and our hitherto fast-growing Tachofta plateaued with around 13 million driver days analysed, in line with 2008. All of these reductions, we believe, reflect the lower activity levels of our members as the recession deepened and continued."
Trading surplus was just shy of £2m. down 10%, but a recovery of £152,000 from the continuing administration of failed Icelandic bank Kaupthing, in which the FTA had held deposits, buoyed the operating surplus to £2.1m (a 27% improvement over 2008, although that year's operating surplus was hit by a provision of £500,000 in relation to the bank's collapse).
Retained surplus for the year was nearly £1.6m, up 10%. A strong focus on cash management led to a 27% hike in year-end cash to £.3.6m.
Membership slipped 2% to 14.017 by the year end, but this had bounced back by the end of the first quarter.
De Pencier expects the second half of 2010 to be better than the second half of 2009. Furthermore. he forecasts a return to genuine growth in 2011.
With a 100% credit rating from Dun & Bradstreet, the FTA is ready to make acquisitions either in areas "that we already cover or in areas that are closely allied to what we do-, says de Pencier. He says the FTA's training service can grow, both organically and by acquisition, and he expects more major fleet van operators to make use of the FTA's services.
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