A major change in boardroom strategy at the P&O combine will involve the disposal and flotation of all its business activities except ferry interests including Irish ferries, ports and cruise lines. Chairman, Lord Sterling, said the board had decided to focus resources on maintaining its global leadership in the maritime sector. Significant amounts of cash would be released by moving out of the property sector where P&O has substantial investments, floating its Bovis construction business on the stock market.
The new disposals strategy was unveiled alongside 1998 financial results detailing a 14.5 per cent increase in headline profits before reorganisation costs and disposals to £416 million sterling (€623 million). Profits on ferry activities, including Irish Sea shipping operations, increased by £6.8 million to £81 million on turnover down £10 million at £418 million.
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