Transport group Christian Salvesen issued a profits warning yesterday amid concerns over the effect of rising insurance premiums on the food industry.
The food distribution specialist said yesterday that profits for the year ending March 2003 would be up to 20% lower than expected.
It has been reported that the company has raised concerns over the difficulties caused by rising insurance premiums.
Managing director Alan Williamson said: "There have been significant increases of up to two to three times previous premiums and, on top of this, companies can face terms and conditions and exclusions."
Broking giant Marsh told the Daily Telegraph today that other companies in the food distribution sector have struggled to obtain affordable cover. Insurers are said to be worried about the use of internal refrigeration units, since they claim they are highly flammable.
