Logistics Firm Exel on Road to Profits Growth
24/10/2005 - 13:08:10
Logistics firm Exel today reported a strong trading performance as it finalises plans for a £3.7bn (€5.5bn) takeover by DHL owner Deutsche Post.
The UK-based firm said its contract logistics division – which manages company supply chains – boosted its showing for the three months to September 30.
The business was lifted by recent acquisitions such as Tibbett & Britten and Power Packaging, as well as strong organic growth.
Exel said: “Trading performance in the third quarter has been strong and the directors remain confident of delivering another year of strong growth in the business.”
The update came as Exel posted details of the proposed takeover to shareholders ahead of a meeting aimed at gaining their support next month. The acquisition is expected to be completed in mid-December.
Exel has more than 110,000 staff worldwide and is best known for handling logistics operations for retailers such as Boots, Morrisons and Sainsbury’s.
The consumer and retail sectors account for around 60% of the firm’s European contract logistics business after it paid £328m (€485.3m) for Tibbett & Britten last year.
It also has a freight management operation, whose performance “significantly” improved during the third quarter.
Profitability was hit by slower airfreight volumes, up 2%, but strong seafreight revenues and increased operating margins led to strong organic profits growth.
Exel also reported an “encouraging” performance from drinks logistics provider Tradeteam, with net contract wins up significantly on the same period last year.
The proposed tie-up with Deutsche Post is expected to create a company with a combined workforce of around 500,000 people.
Deutsche Post is keen to combine Exel’s strong position in the UK and United States with its smaller logistics arm, which operates in Europe.
During the past 15 years, it has transformed the business from a government-managed agency to a multi-national group. Around 40% of its revenues now come from domestic and international courier, parcel and express delivery services, including through DHL.
[Source]
Logistics firm Exel today reported a strong trading performance as it finalises plans for a £3.7bn (€5.5bn) takeover by DHL owner Deutsche Post.
The UK-based firm said its contract logistics division – which manages company supply chains – boosted its showing for the three months to September 30.
The business was lifted by recent acquisitions such as Tibbett & Britten and Power Packaging, as well as strong organic growth.
Exel said: “Trading performance in the third quarter has been strong and the directors remain confident of delivering another year of strong growth in the business.”
The update came as Exel posted details of the proposed takeover to shareholders ahead of a meeting aimed at gaining their support next month. The acquisition is expected to be completed in mid-December.
Exel has more than 110,000 staff worldwide and is best known for handling logistics operations for retailers such as Boots, Morrisons and Sainsbury’s.
The consumer and retail sectors account for around 60% of the firm’s European contract logistics business after it paid £328m (€485.3m) for Tibbett & Britten last year.
It also has a freight management operation, whose performance “significantly” improved during the third quarter.
Profitability was hit by slower airfreight volumes, up 2%, but strong seafreight revenues and increased operating margins led to strong organic profits growth.
Exel also reported an “encouraging” performance from drinks logistics provider Tradeteam, with net contract wins up significantly on the same period last year.
The proposed tie-up with Deutsche Post is expected to create a company with a combined workforce of around 500,000 people.
Deutsche Post is keen to combine Exel’s strong position in the UK and United States with its smaller logistics arm, which operates in Europe.
During the past 15 years, it has transformed the business from a government-managed agency to a multi-national group. Around 40% of its revenues now come from domestic and international courier, parcel and express delivery services, including through DHL.
[Source]
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