Fleet News

Universal profits fall

UNIVERSAL Salvage's pre-tax profits dropped 26% to £3.4m (1996: £4.6 before exceptional flotation costs of £0.7m) in the year to 30 April 1997, against a 24% increase in turnover to £57.1m (1996: £46.1m). The Bedfordshire-based contract motor salvage company issued a profits warning in April, at the same time as announcing that its managing director Richard Bird had left the company.

Commenting on the results, chairman Cliff Bassett said the number of units cleared for disposal had fallen short of expectations and a number of factors had substantially depressed the average profit per unit.

He added: 'We have recently completed a full review of our infrastructure costs. This has resulted in a number of measures being implemented that will enable us to process increased volume with little additional cost and improve our auction process. I believe the underlying business and medium term prospects for the Group give justifiable cause for confidence.'

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