TOG warns of lower distribution profits
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• The Transport Development Group is predicting a tough time this year in the market place as slowing industrial activity takes its toll.
In a statement which presents an ovemew of the state of road distribution and storage contracts—and wit be of interest to the company's haulage subcontractors—the transport giant predicts a fall in cold-store custom and "lower activity in industrial manufacturing which will affect profits from that sector".
The warning comes with TDG's financial results for 1998, which reflect a year of upheaval and a pre-tax loss of £3.9—the
company gave £110m back to shareholders and lost £26.2m worth of customer goodwill from selling its Cox plant hire business and some smaller businesses.
During 1998 TDG says operating profit from its retained businesses was slightly ahead at £36.5m, while margins rose to 8J%; up from 7.3%. In 1997 the company increased its operating profits by 4.2% to £35m.
During 1998 management merged the tanker businesses TDG Linkman and Nexus into TDG Nexus, while TDG Beck & Pollitzer, Harris and Williams were merged to form TOG Logistics.