Logistics group Exel said trading during the last quarter had hit

targets, despite conditions for many of its customers remaining difficult.

The B group, which employs 20,000 people in the UK, told investors trading in the third quarter of its financial year had been good.

Exel called a meeting of investors to update them on its progress following the merger of Ocean and NFC two years ago, which created the present group.

Chief executive John Allan said: "The first nine months of this year have confirmed the resilience of Exel's business model. We have been able to focus on delivering high levels of customer service that has translated into good new business wins and a strong rate of contract renewals."

The group remained confident it would meet market expectations for the full year.

Exel, which serves Tesco, Marks & Spencer, Sainsbury's and oil group BP, said it had secured new contracts in the nine-month period worth more than £500 million of annualised revenues.

This included a large deal recently confirmed with Belgian brewer Interbrew.

Mr Allen said: "Ex-cluding this significant gain, the rate of new contract wins has been in line with that achieved in the first half which is a very positive result given underlying economic conditions.

"Trading conditions for many of our custom-ers remain difficult and there are few signs of recovery in the near- term."

In July, the group said pre-tax profits in the six months to June 30 rose to £100.3 million, compared with £88.6 million a year ago, before one-off costs. After exceptional gains and goodwill costs, bottom-line pre-tax profits were £89.3 million, up from £77.8 million.