TDG has cash for acquisition
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by Juliet Parish • Transport Development Group is turning to UK and Continental acquisitions after raising "a bundle of cash" in 1993 by selling several loss-making and non-core subsidiaries.
The group saw pre-tax profits fall from £33.5 million to £26.9m last year; turnover decreased from £565.5m to £549.6m.
TDG intends to buy companies larger than it has in the past; with turnovers as high as I:50m.
Ideally its acquisitions will haul direct for manufacturers, because "the retail sector has been a bit tricky over the last year," says chief executive Alan Cole.
The cash from last year's disposals—London & Coastal, Firth Distribution in Northern Ireland, USbased Willig Freight and French subsidiaries Translittoral and Transports Liberatoire—will also allow the group to develop its under-performers.
It will try to turn round its shared-user arm, Network Logistics, which is losing money and is "dogged by lack of volume".
Inter-City Transport is under scrutiny to see if it can encourage profitability by contracting out its haulage. It broke even in 1993: and "does a lot of miles for a very slim margin", says TDG.
Bulk liquid operator Linkman Tankers improved performance with "strong management of costs" and by shedding unprofitable business. The subsidiary underwent a change of management last year after managing director Richard Kirby left and Peter O'Keefe took over the role.
UK operating profit climbed 10% to £35.1m in the year to December 1993. Continental operating profits fell by 60% to £3.2m,