TDG cuts back in Netherlands
TDG, the UK and European contract logistics group, has issued a trading update ahead of the release of its annual results. The company expects that its full year profits will be broadly in line with expectations despite what it terms as challenging conditions in all its markets.
Management stated that profit levels for its contract logistics and cold storage business in UK & Ireland would remain on a par with last year, mainly as a result of cost cutting initiatives. However profits in Netherlands would be lower than expected due to lower volumes. To counter this, the company has cut jobs and consolidated facilities, which will also enable the sale of property in the country that is excess to requirements. It has confirmed its commitment to the market which it believes will be more profitable when the economy recovers.
TDG’s plans to withdraw from France are proceeding according to plan. This will allow the company to realise income through the sale of properties in the country. The company announced earlier in the year that it would be transferring the business of its former La Flèche du Nord subsidiary to MGF Logistique with which it would then partner.
