Salvesen reports loss, slashes divi
Christian Salvesen has said that tough trading conditions are set to continue as the struggling logistics group almost halves its dividend.
Salvesen, which recently saw its shares slump after it said bid talks for the group had ended, has also proposed a near halving of its full-year dividend to 3.65p, compared to 6.60p last time.
The group said that while its food and consumer businesses have proved resilient in mainland Europe, delays in the opening of a new facility in the UK reduced profitability and the sector remains under “severe pricing pressure.”
Salvesen reported a pre-tax loss of £5.5m for the year to March 2003 against a profit of £8.5m a year earlier, while turnover rose 5% to £877m. Salvesen said its restructuring efforts were still ongoing and it plans to merge its two UK divisions.
The group divested its loss-making German unit last year, and said that it will be taking a further £10m exceptional charge related to the business after the sale is completed.
Salvesen, which announced that chairman Jonathan Fry is to resign in September, added that UK economic and trading conditions have remained “extremely challenging” and that profits will be constrained by the tough trading and rising pension costs this year.
