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Vocational training provider Melorio (MLO:AIM) is to launch a business aimed at teaching logistic industry workers.

Chairman Adrian Carey says it is a ‘natural extension’ to Melorio’s focus on construction, where it trains staff for corporates including Laing O’Rourke under its Construction Learning World (CLW) arm. ‘There is an overlap as construction businesses run large fleets,’ commented Carey. It may also launch a utilities business, as 17% of CLW’s candidates specialise in this area.

Originally planning to enter the logistics market through acquisition, Melorio said it was ‘unimpressed’ with available businesses, instead choosing the start-up route.

It will invest up to £150,000 to launch in the spring with profit expected within a year. It has applied to be an accredited centre to deliver related NVQs and expects a decision potentially within eight weeks.

The company said it should beat market expectation for the year to March 2008, following strong trading within CLW. House broker Kaupthing upgraded its EPS forecast for the period by 10% and 14% for 2009.

Melorio said an economic slowdown should not harm the business. ‘There’s plenty of government money for good trainers. There’s no real cost to employers and regulation and compliance requires workers to be properly skilled.’ It advanced 7% to 103.5p intraday on the trading update.

Shares says: The cautious approach to M&A is wise in the current climate as the market will not forgive buying mistakes.

by: Dan Coatsworth