News

TDG has increased its profit and turnover for the first half of 2008, despite the company being surrounded by takeover speculation for much of the period.

Operating profit in the six months to 30 June went up 15% to £9.2m from £8m in the first six months of 2007. Pre-tax profit increased to £6.9m from £5.8m in the corresponding period last year - a rise of 19%. The turnover figure - £371m - was up 16% from £319.4m.

In February,  private equity firm Laxey Partners - which already owned about 22% of TDG's issued share capital - announced an indicative cash offer of 275p for the company.

In May, Wincanton revealed its intention to make an indicative cash offer for TDG at a value of 281.25p per ordinary share, or 290p when the dividend of 8.75p was included.

Last month (July), following the withdrawal of Wincanton from the process, TDG reached agreement  with Laxey on the terms of a recommended cash offer at 250p per share. David Garman, chief executive, says: "These results have been achieved despite the dist raction of being in an offer period and this is a credit to all our employees.

"There remains considerable uncertainty over economic conditions but we continue to expect our operations to make further progress in 2008."

Meanwhile, TDG has signed a deal worth £11m a year over five years to run the Kellogg's cereals and food warehousing operation. TDG will manage the contract from a new 311,000ft² warehouse at Trafford Park, Manchester.

Colin Ridler, supply chain director at Kellogg's, says. "There is a great deal of synergy between the way TDG and Kellogg's work, and we are looking at developing this further to make our storage and transport more energy-effective."