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Christian Salvesen finds that Spain is a tough environment
Page 14
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The logistics providers restructuring programme will have 'particular focus' on the firm's UK and Spanish transport businesses. Chris 'Tindall reports.
.2HRISTIAN SALVESEN ippears to be following in the footiteps of its rival Wincanton by mcountering tough trading condiions in Spain,where volumes have )een lower than expected.
The high-profile European ogistics provider is also turning he spotlight on its UK transport Terations. It admits that forth:oming results for its domestic )perations will reflect an increasngly challenging market.
In a pre-close trading statement Thristian Salvesen says its year:nd results are expected to be in inc with market expectations and evenue growth will he around 0% in the second half of the corniany's financial year.
It adds that it has performed trongly in its UK food and .onsumer sector, but converting revenue growth into profits within transport operations remains an elusive goal.
A statement from the company explains: "The programme of restructuring to improve efficiency across the group is continuing, with particular focus on our UK and Spanish transport businesses and the European food and consumer business.
"This will result in restructuring costs of around 1.4.5m in the second half of the year just ended."
In a statement at the end of March Wincanton reported that it had closed down its loss-making Spanish operations and was selling off related properties. Transport Intelligence analyst John Manners-Bell says: "The UK transport market continues to he cut-throat [and it seems] nothing fundamental is going to change which will have a positive effect on the companies working within that market.
"Christian Salvescn has had a problem with the Spanish market for a number of years," he adds. "It looked like it had turned it around, hut it's certainly a lot more fragmented than the UK market and just as cut-throat," Christian Salvesen chief executive Stewart Oades was unavailable for comment as CA,/ went to press.