Forth Ports predicts turning of tide in 1994: Scottish company lands lucrative oil-handling deals to improve outlook after drop in business cuts share price
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Your support makes all the difference.FORTH PORTS, the privatised Scottish ports operator, gave an upbeat assessment of prospects for the current year as it announced a pounds 200,000 rise in operating profits to pounds 10.2m in 1993.
Hugh Thompson, chief executive, said that although the profits increase was small, it was achieved despite an expected large drop in business from British Pipe Coaters, which enjoyed boom years in 1991 and 1992.
Forth's shares fell 16p to 489p, but they have more than doubled in the past 12 months. The dividend rises 16 per cent to 7.25p.
Profits were lower at the pre-tax level - pounds 9.6m against pounds 11.9m - but the group had benefited to the tune of pounds 1.2m from a one-off gain on early repayment of government loans in 1992.
Mr Thompson said 1994 began well, with growth in the core business from new customers using the ports. 'Piped cargo is going up quite dramatically, with our Hound Point 2 terminal now on stream,' he said. Forth has also signed long- term agreements with BP and Shell.
Profits will also be boosted this year by the first tranche of income from Forth's property joint venture at Victoria Quay with Godfrey Bradman. The property is being bought by the Scottish Office and Forth is expected to take a profit of pounds 1.5m to pounds 2m on it this year.
The area around the port is being further developed, with the refurbishment of the Mariners Hotel, owned by Forth, to be managed on a contract basis by Ken McCulloch, who was 1993's UK Hotelier of the Year for his work at One Devonshire Gardens in Glasgow.
The 1993 results benefited from a big rise in car imports, with Ford deciding to route cars for Scotland through the port. Forth handled 16,000 cars, most of which were Mondeos. 'It was supposed to be a one-off contract to cope with the demand for the new model,' Mr Thompson said, 'but Ford were so impressed with the service that they are looking at their normal distribution channels and we hope to have a long-term relationship with them.'
He added that there was no sign of the Transport Secretary forcing the trust ports still in the public sector to privatise. Forth is expected to be a bidder for some of the ports when they are sold.
The group was beaten to the acquisition of Medway Ports last year by Mersey Docks. Mr Thompson said Forth was not prepared to overpay for growth.
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