Trading Statement
27 Juni 2003 - 9:01AM
UK Regulatory
RNS Number:8561M
Tibbett & Britten Group PLC
27 June 2003
27th June 2003
TIBBETT & BRITTEN GROUP PLC
TRADING UPDATE
Prior to entering its closed period for the six month trading period to 28 June,
2003, Tibbett & Britten, the UK-based international logistics service provider,
is issuing the following trading update:
In the UK, we continue to make good progress and have seen a number of new
contract wins. These include significant new business with Boots and additional
new business with Homebase, Tesco and other major retailers. The impact of this
new business will primarily benefit the second half.
In the Americas, we have successfully started up operations for Procter & Gamble
in Mexico and continued the development of our Mexican business. In the US, our
business remains broadly on track, however Safeway, Inc. advised us, on June 26,
of their intention to take the Tracy, California operation back in-house from
August 2003. Safeway has assured us that this decision has not been made on
performance grounds. The consequent impact in lost contribution in the second
half will be approximately #0.5m. Under the open book contract with Safeway we
will not incur any termination costs.
As a result of the terms of the revised agreement entered into with Safeway in
July 2002, settling an earlier long running dispute, we will also write off
unamortised contract costs of #3.5m in the first half. Additionally, in the
first half we have recognised a provision of #3.1 million against an outstanding
receivable from a former North American customer who entered into Chapter 11
Bankruptcy proceedings. Although we anticipate receiving a considerable portion
of the balance outstanding, we have provided against the full amount. The
impact of this provision has broadly been offset by the termination payments to
be received in connection with the Marks & Spencer contracts.
Elsewhere, Canada remains a buoyant market with encouraging levels of new
business development. We believe that the trend towards outsourcing in the North
American market is continuing.
We are continuing to build a Mainland European business despite the difficult
economic environment, particularly in France and Iberia. We have won new
business with Levi Strauss, Rubbermaid, Tesco and successfully started
operations for Rodier. We continue to expand our fashion capability throughout
Europe.
Enquiries:
Tibbett & Britten 020 8327 2000
Mike Arrowsmith, Chief Executive
Mark Whiteling, Group Finance Director
Hudson Sandler Ltd. 020 7796 4133
Andrew Hayes/Jessica Rouleau
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTILFIARIIRFIV