NFT Distribution recorded a pre-tax loss in the 12 months to 2 April 2016 after exceptional costs of £7.1m, although the operator said it was now well placed to prosper.
The bulk of the costs related to a “major incident” that saw the M1 closed for 18 hours on 2 December 2015 and the start of a new client contract at Daventry.
“These costs are provided for in full but are still the subject of detailed negotiations, which precludes us from giving further details,” the company added in a statement.
NFT said it had also faced headwinds in the period due to a tough grocery market.
In the 12 months to 2 April 2016, turnover was £158.6m (2015: £162.6m). Operating profit before exceptional costs was £2.4m (2015: £4.3m).
NFT told Motortransport.co.uk: “We are seeing our costs increase and during this financial period we carried those costs and did not pass them on to our customers, hence our reduced profit. The grocery sector is doing its utmost to avoid passing on costs to customers.”
NFT chief executive David Frankish said the operator, which delivers on average 130,000 pallets a week across the UK, was continually looking for greater efficiencies in the business and for “selective additions” to its network.
This includes the £20m acquisition of temperature controlled specialist NR Evans and the continued development of its multi-temperature transhipment warehouse facility at the Port of Tilbury.
NFT said the warehouse, opened in March this year, was now fully operational with new customers using its facilities.
NFT told Motortransport.co.uk: “NR Evans is a strong UK brand serving complementary markets and geography in the UK, widening NFT’s total range of products and services.
“We expect our revenue will be higher in the current year, partially as a result of the NR Evans acquisition, but as this was only completed in July, the full contribution will not be seen until the end of the full financial year ending March 2018.
“We are encouraged by a number of new customers serving both the chilled food and produce markets that are now using the Tilbury facility and its multi-temperature capability, but we are not making names public.”
Frankish added: “Our strategic focus on being the market leader in our field has been enhanced by our recent investments and I believe NFT is well placed to achieve sustained profitable growth.”
