Exel sees steady growth in 2003
Exel, the UK forwarding and contract logistics group, has announced its results for the full year 2003. The company reported a growth in turnover of 8.3% from £4,679m (€7018.5m) to £5,068m (€7,602m). At constant exchange rates growth was even higher, at 10.4%. Operating profit grew at 4.1% to £154.4m (€231.6m), although this too would have been better but for currency fluctuations. Consequently operating margin was 3.04%, a decrease on 2002.
On the whole management was pleased with the results which benefited from an improving economy in the second half of the year. The second half saw strong improvements in European freight management and contract logistics, the Asia Pacific market as well as its home UK business. The one division which disappointed was its US freight management operations where operating profit declined by 96% within the context of a highly competitive market. Conversely its US contract logistics operations made strong progress.
Over the last year Exel spent £110m (€165m) on a number of new acquisitions which focused on building its operations in a number of specialist markets and sectors. These included the healthcare sector, and the Italian consumer goods logistics market.
