Looking at UK Pallets' directors’ report and financial statements for the year to 31 March, reveals additional detail about what was the network’s annus horribilis.
As previously stated, via parent company UK Mail’s May results, last year was a grim one for the pallet network. For example, operating profit was down 59% from £2.09m to £842,000 [the figure has been adjusted marginally since May].
This, the newly published directors’ report highlights, reduced operating margin from a handsome 7.4% in the same period a year ago to a plain 2.7%.
Although with turnover at the network broadly flat, it was the departure of a number of members and the need to provide temporary, more expensive cover to ensure network coverage that effectively took a sledge-hammer to UK Pallet’s profitability last year.
However, UK Pallets remained profitable and banked £636,000 (2012: £1,562,000). Something a number of road transport businesses would welcome.
No doubt with coverage issues resolved and a newly promoted MD on board in the shape of Graeme Wilson, all concerned will be looking to get back on track.
However, recent figures from parent company UK Mail suggest there’s still some way to go if UK Pallets is to thrive.