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One of the longer-term holdings and, until recently, a serious drag on performance. Accepting that the core business - trucking - is low-margin and competitive, management essentially made it worse, with each turnaround plan failing to achieve any decent results, and with the UK business consistently producing a return on capital lower than its cost. The European business always fared better, and the 5-7% yield was a comfort, but this was a sickly little creature which needed to be put to sleep. Norbert Dentressangle, a much larger French logistics company, decided to do just that with a 91p per share bid (recent low, 51p), a price which seems not only too high, whatever the synergies, but one to be gratefully accepted by all shareholders.
Salvesen (Christian). A transport and logistics group which over recent years lost its way. Refusing a takeover bid 4 years ago at 200p, the company also called off merger talks with TDG at around 60p, perhaps rightly so given TDG's pension hole. However, although margins are tight and business conditions tough, the whole sector is rationalising and with luck, will 'legally' cartelise. The client base is well spread and the valuations very good, such as the 6% plus yield. The recent trading statement was downbeat but even low-balling their own numbers, it is now a clear recovery play with the prospect of significant restructuring under the rated new CEO from Exel, a larger competitor.
| Sedol |
Type |
Price |
Date |
| 0771276 |
Sell |
£ 0.925 |
02/10/2007 |
| 0771276 |
Buy |
£ 0.642 |
24/03/2006 |
| 0771276 |
Buy |
£ 0.627 |
22/03/2006 |
| 0771276 |
Buy |
£ 0.622 |
17/03/2006 |
| 0771276 |
Buy |
£ 0.648 |
19/12/2005 |
| 0771276 |
Buy |
£ 0.675 |
14/06/2005 |
| 0771276 |
Buy |
£ 0.657 |
10/06/2005 |
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