Applied Distribution agrees pounds 17m bid

Tibbet & Britain, the transport group, made an agreed pounds 16.8m bid for Applied Distribution Group. Terms of the offer are one new Tibbet & Britain share for every 13 Applied Distribution shares. The offer values each Applied Distribution share at 48p. Tibbet & Britain said the bid offered potential earnings enhancement in the medium term. It added, however, that "these statements should not be interpreted to mean that earnings for the current or future years are expected to exceed any specific absolute figure".

For 1996, Applied Distribution reported pre-tax profits of pounds 280,000 for the year after an exceptional item of pounds 1.5m. This compared with pounds 5.07m of profits it made in 1995. The contract which gave rise to the exceptional item in 1996 continues to perform poorly and is the subject of continuing discussions with the customer.