Pallets picture brightens at Brambles

INDUSTRIAL support services group Brambles soothed investor fears today with an upbeat trading statement that picked the Anglo-Australian stock off a four-month low and made the shares the leading riser in the FTSE 100 index.

After disappointing interim results earlier this year and fears from brokers that the shares look fully valued, Brambles said ahead of the close of its financial year at the end of this month that things are picking up in its key North American pallets market.

Brambles Industries was formed by the merger of GKN's industrial services division and Australian group Brambles last year. Today it said its CHEP division, which distributes pallets, had increased yields in North America. But it warned that CHEP's European performance was slower and it is still concentrating on breaking into the Italian and German pallet markets.

Brambles is embarking on an investor roadshow in the US and Britain this week and next. The company, which reported a 14% fall in pre-tax profits before exceptional items, in February, is expected to post full-year profits of about £315m, down from £338m last time. The shares rose 15 3/4p to 315p.