Logistics group Christian Salvesen, which began a restructuring after a takeover bid earlier this year, yesterday reported a 34% drop in half-year profits but promised to restore its UK business to growth.
The former Scottish group now based in Northampton posted pre-tax profits of (pounds) 10.1m for the six months to September 30 following an 8% drop in UK sales and a (pounds) 2.4m pensions charge.
But the company reported progress in the overhaul of its UK operations, with the merger of its two divisions - industrial logistics and food and consumer - largely complete and a new management team in place. Most encouraging was 5% growth in its mainland Europe operations and a new (pounds) 5m deal to distribute products of Durex-to-Scholl group SSL in the UK.
Chairman David Fish forecast full-year performance in line with expectations and said: ''Our immediate priority is to restore the UK operations to growth and a good level of profitability as quickly as possible.''
He said merging the two divisions had brought savings of (pounds) 4m a year and spurred contract wins such as a deal with the Wickes DIY chain, which took it into the home delivery market for the first time.
New business was secured from Marks & Spencer for its concept Lifestore, which is to be launched next year, and also from supermarket chains Safeway and Morrison.
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