Exel enjoys 10% rise in underlying profit

Logistics group Exel posted a 10% rise in underlying profits today and said it had continued to deliver a performance in line with expectations.

Despite the prospect of another challenging year, FTSE 100 company Exel reported a sound start to 2003 with trading in line with hopes.

The comments come as pre-tax profits before exceptional items rose to £205.3m (€296.9m) from £186.6m (€269.9m) and turnover lifted almost 6% to £4.69bn (€6.78bn).

Chief executive John Allan said the figures showed Exel could deliver solid growth in weak economic conditions.

He added: “Provided there is no material worsening of world economic conditions, we believe Exel is well positioned to make good progress in 2003.”

Exel was helped during 2002 by a strong performance in the second half of the year from its UK and Ireland contract logistics business.

That partly offset pressure on margins caused by higher insurance costs and weak performances in France and Spain as operating profits in Europe, Middle East and Africa fell 6%.