New wins give Exel a profit boost

EXEL has shrugged off sluggish international markets, lifting first-half new business by 14% to £400m.

The world's biggest freight management group posted turnover from continuing operations up 10.3% at £2.4bn for the six months to June.

Thinner margins in continental Europe cut the growth in profits. Interim pre-tax profits rose 5.7% to £67m but after accounting for pension liabilities under controversial new accounting regulations, pre-tax profits fell to £69.7m from £83.3m a year earlier.

Contract logistics was the best performing division, with turnover up 15.5% to £1.28bn and operating profit up 27.5% to £41.7m.

Good performances in UK and Irish freight management were offset by weakness in mainland Europe. The division's total sales increased 4.5% to £1.06bn but operating profits fell 23.4% to £23.3m.