Seacon Holdings Releases Preliminary Results

Seacon Holdings recorded a profit before taxation of £996,449 for the year ending September 30, 2000, compared to a profit before taxation of £3,284,681 reported the previous year, of which £408,181 was related to the trading activities of the company and £2,876,500 to the sale of the London Steel Terminal. Seacon Shipping recorded a £40,000 contribution to operating profit for the financial year, having reported a loss of £205,000 in the previous year. Ship Operations operating a fleet of six time-chartered coastal vessels during the year, moved from a small profit at the interim stage to a modest loss for the full year, as spot market freight rates and the availability of contract cargoes, mainly involving steel exports, moved below expectations. The Agency department increased the number of vessels provided with agency services to produce a significant improvement in results over the previous year. The fleet, which has been reduced to five vessels, has been operating in adverse market and meteorological conditions since the end of the financial year. However, efforts are being made to increase and consolidate contracted cargoes for the ships, which primarily carry steel and newsprint. Seacon Terminals TheTower Wharf Terminal, which continued to operate in a competitive environment, handled 730,000 tons during the financial year - an increase of 12 percent - with steel, lead, copper and newsprint accounting for 99 percent. While steel imports at 450,000 tons were up 25 percent and lead at 186,000 tons by 8 percent, the additional income only partly compensated for the loss of revenue from a reduction in newsprint imports. As a result, the trading contribution to operating profit at £270,000 is lower than the contribution of £433,000 reported last year, which included above average newsprint income. However, taking into consideration a significant rebate on business rates, primarily relating to earlier years, the total contribution attributable to the terminal has increased to £630,000.