Lloyd Fraser Holdings reports slump in profits despite healthy turnover

3PL Lloyd Fraser Holdings saw turnover rise to £44m in the year ending 28 February 2022, a 20.6% increase on the previous year.

The company said it had performed well in a challenging market and attributed the increase to its fashion logistics seeing a positive recovery as the country exited pandemic-related lockdowns.

“Due to the nature of its operations and the nature of the milk industry, the bulk liquids division, having been unaffected by the previous year’s Covid-19 issues, continued to trade at stable levels during the year to February 2022,” it said.

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However, profits did not fare as well, with pre-tax profit falling 59.5% to £670,000 and operating profit decreasing by 55.4% to £772,000.

In its business review, Lloyd Fraser Holdings said: “The operating profit decrease is as a result of there being no further furlough relief on business that operated at a lower margin during the recovery phase post Covid-19. In addition, cost inflation has also contributed to reduced margin in the year.

“As volumes ramped up post lockdown, revenues and costs became aligned back to normal trading levels,” it added.

Earlier this year, the Rugby-based logistics provider took out a five-year lease on a 43,078sq ft unit in Runcorn for its retail logistics business.