Poor results for NFC
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• Further cost-cutting is expected at NFC this year following dismal full-year financial results from the international distribution and removals giant.
In a statement that revealed a catalogue of falling profits from most of NFC's domestic and overseas businesses, the new top management team announced a 25% fall in operating profit to .£88m on turnover up 7% at 1:2.2bn. The board, led by chief executive Gerry Murphy, predicted that the cornpetitive market conditions faced by NFC worldwide in the year to 30 September 1995 are expected to continue.
Focus on the company's 100 cost-saving projects is likely to intensify with NFC predicting that up to £29m will be spent this year on improving its financial performance.
The group has spent £53m over the past two years. Li Exel Logistics experienced "particularly competitive market conditions" in the UK and Ireland and Pickfords suffered from the depressed domestic removal's market, resulting in a 15% fall in operating profit to £272.7m on revenue up 6% to 591'.6111.