French logistics experts Norbert Dentressangle Group has beaten the credit crunch and announced huge revenue increase despite fourth quarter drop-off.
Annual revenue was up by 72 per cent due to the full-year consolidation of the Christian Salvesen company into the group and like-for-like growth of 4.3 per cent in its logistics division.
The company estimate they will incur a recurring operating income of approximately €75 million (£68 million) for the year.
François Bertreau, chairman of the Executive Board, said: “The Group posted satisfactory business growth for the year. The Logistics Division, with seven per cent organic growth, reached its target, while the transport division saw a sharp slowdown in business in the last two months of the year, in particular in the UK. As a result, we estimate recurring operating income at about €75 million for 2008.
“However, operating income before goodwill will be much higher than in 2007. In this period of reduced visibility, more than ever, clients are seeking out reliable, efficient service providers with which they can build a strong, lasting relationship, and our Group offers a solid foundation in the transport and logistics sectors. This enabled us to sign major new transport and logistics contracts at the end of the year.
The transport division experienced the abrupt business slowdown in the industry in November and December but also saw a drop in fuel prices. In reported data, the Group posted 54 per cent growth for the full year 2008, as opposed to 63 per cent over the first nine months. The slowdown was particularly strong for the transport business from the Christian Salvesen scope in the UK which represented 5 per cent of consolidated Group revenue. The Transport division’s like-for-like growth totalled 2.8 per cent for the year.
Due to the sharp economic slowdown in the fourth quarter, recurring operating income is now expected to come out at €75m for 2008, as opposed to €68m (£62m) in 2007 in reported data and €91 million (£82m).
Operating income before goodwill, positively impacted by the income from the sale of four logistics warehouses, will be much higher than reported operating income in 2007. The Group is set to tackle 2009 with a healthy balance sheet and a gearing ratio (debt/equity) lower than at the end of June 2008, which stood at 174 per cent.
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