UK logistics firm TDG wins 100 mln stg Argos deal
LONDON, Feb 25 (Reuters) – British logistics company TDG Plc (LSE: TDG.L – news) on Wednesday said it had won a 100 million pound ($188 million) five-year contract from retailer Argos and posted a fall in annual profit amid restructuring costs.
The Argos deal involves the storage, stock management and order picking of the full range of Argos products and distribution to 80 stores in Scotland and Northern Ireland.
TDG shares were up 1.9 percent at 216 pence at 0815 GMT, valuing the company at about 170 million pounds.
Chief Executive David Garman said the deal meant TDG’s new business this year would be nearly half the level achieved for the whole of 2003.
“Costs associated with this higher level of business wins will mainly be borne in the first half of 2004. We currently expect trading for 2004 as a whole to be at similar levels to 2003,” he said.
TDG made 200,000 pounds pre-tax profit in 2003 on turnover that fell five percent to 541 million pounds. The earnings figure was after exceptional charges including 16 million pounds for closing its French operation and 4.5 million pounds for other cost reductions.
In 2002, TDG’s pre-tax profit was 22.4 million pounds.
The total dividend was raised 10.7 percent to 14 pence.
