Cutting costs helps TDG to mark time

THE FRENCH lorry drivers' blockade cost Transport Development Group, the distribution and storage company, about pounds 250,000.

But half-year taxable profits still rose 2 per cent to pounds 16.8m as the benefits of cost-cutting continued to feed through.

Analysts are maintaining full- year forecasts of about pounds 40m, pinning hopes on the usual seasonal increase in TDG's activities in the second half.

In the UK the company's transport operation puts it at the forefront of any upturn in the economy, but Sir James Duncan, chairman, said: 'So far, we see no signs of an improvement in 1992. We have successfully realigned ourselves to meet changed conditions, but there has been no growth in this country.'

Redundancy costs in the first six months doubled to pounds 1.6m compared with the same period last year, largely because of a reorganisation in the distribution division caused by the decline in sales of white goods.

The UK storage division saw profits up pounds 1m to pounds 4.8m after the elimination of losses at Charles Alexander, closed last year. Sir James, who retires at the end of this month after 39 years with TDG, said the company had won a contract from Cadbury Schweppes to manage its planned single storage depot serving the whole of the UK.

In France, where a new management team has been installed to steer the division through the country's deepening recession, TDG made a loss of pounds 537,000 ( pounds 1.8m profit).

TDG has still not found a buyer for Willig (CRRT) Freight Lines, its transport business in the United States, which has been on the market for 12 months. The company has set aside pounds 15m against the cost of pulling out of the US.

The interim dividend is held at 3p.