S&S Distribution has returned to profitability helped by its warehousing division and investment by new owner Palletline.
Palletline bought network member S&S Distribution and S&S Warehousing, a separate firm to S&S Distribution, in May 2015.
The deal, which was the pallet network’s first buy-out of a shareholder-member, saw profits fall after a goodwill write-down of £142,215, after a review of the company’s customer base.
The write-down saw the firm’s pre-tax profits fall from £207,915 in the year to July 2014 to a loss of £48,355 in the 11 months to June 2015.
However, reporting its latest annual results to 30 June 2016, the Tonbridge, Kent-based haulier said investment by the new owners and the contributions in revenue and profit from S&S Warehousing had helped boost pre-tax profit to £328,191.
Overall turnover also rose in the period to £8m (2015: £6.9m). This was boosted by a seven-fold rise in turnover from the company’s warehousing division to £584,769 (2015: £81,907).
In the same period, S&S Distribution’s haulage and transport turnover delivered a 6.7 % increase to £7.4m (2015: £6.9m). However the firm’s turnover in Europe fell almost five-fold from £34,880 to £7,117.
The company, which operates 60 vehicles and 60 trailers, specialises in transporting palletised goods across the UK, with a particular focus on the South East.
The firm, which was sold to Palletline by brothers David and Ken Sanderson, has retained the existing management team, under the leadership of MD Richard Ball.
In its review of the business the directors said the company will continue to use the Palletline network and reduce costs “through more efficient work practices and excellent customer service”.
It also noted that the ongoing driver shortage and volatility around world oil prices were continuing to present a challenge to the company.
Palletline financial director Mark McColl told Motortransport.co.uk: “S&S Distribution has delivered an excellent performance and is continuing in the same vein.
"This has been a good acquisition for Palletline and we also acquired a good management team under the leadership of Richard Ball."
