Hays makes bigger profit
New contracts worth £70m a year have helped Hays Logistics achieve a turnover of £451m, an increase of 16% in the six months to December 31. The contracts are with J Sainsbury, BMW, Gillette Danone and Carrefour.
John Cole, group managing director, says: “Logistics had a very good first half. Despite the impact of fuel costs and the investment programme we are in the progress of making, revenues are up 20%, and operating profit up 10% to£28m. The company reported that the fuel crisis cost it £3-4m. The three main drivers of that profit were the Iveco, B&Q and EPS contracts. “The underlying organic sales growth in logistics remains extremely strong at 16%, a clear sign that our strategy is working, and the future of logistics is looking very positive.”
Bob Lawson, currently deputy chairman at Hays, will take over from chairman Ronnie Frost from July 1.
Motor Transport. 8 March 2001
