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Lynx issues warning over distribution

Talking up a shift toward services

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Following a fall in its end-of-year profits, the Lynx Group has also warned of "uncertainties" in its distribution business coming up to the new year. The UK company blamed the poor performance on the millennium bug and difficult market conditions. Pre-tax profits fell to £11m from £13.3 million despite a 17 per cent rise in turnover to £212.5 million. The group has made a number of acquisitions in the last year, and may now be suffering the longer term effects of a short-term income boost. Richard Last, Lynx chief executive, said the company will now concentrate on growing its consultancy and support services operations. Last also said the company had set aside "a number of millions" for future acquisition targets both inside and outside the UK. ®

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