Restructuring headache hits T&B

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LOGISTICS group Tibbett & Britten has said its full-year profits will be lower than expected after a shake-up of its Mexican operations ran into trouble.

Chairman John Harvey warned pre-tax profits were likely to be 5 million lower after incurring "substantial" additional costs during a restructuring at Dimalsa, the Mexican logistics firm it bought last year in a 42m deal.

Shares fell 10 per cent, sliding 47.5p at 424p, following the announcement that the closure of eight warehouses into a single centre in Mexico City had initially not been implemented to plan. Harvey said efforts to get the project back on track had run up significant costs.