Tough trading in UK hits Salvesen profits
Christian Salvesen (LSE: SVC.L – news) , the logistics group, announced on Tuesday that pre-tax profit for the first half fell 22.8 per cent to £13.2m before exceptional items on turnover that was up 4.8 per cent at £431m. After exceptionals, pre-tax profit was £6.3m, down from £17.2m last time but the board maintained the interim dividend at 2.65p.
Salvesen said flat sales and a £4.8m fall in profit in its UK industrial operation was a consequence of tough trading conditions, particularly in autos. Insurance costs were up and there were driver shortages as well.
No short term improvement is expected so it is seeking to raise prices, downsize the fleet, exit unprofitable activities and close a site at Stoke.
Shares in Salvesen were up 5.56 per cent at 57p.
