Malcolm Group blames Covid for dip in revenues

Malcolm Group saw revenues fall 12.9% in the year ending 31 January 2021, after both its logistics and construction services and waste management divisions were impacted by the pandemic.

Turnover was £193.8m in the period, compared to £222.6m the previous year.

Operating profit was £9.5m, against £10.6m in 2020, although its operating margin increased to 5% from 4.7%, an improvement described by the group as “a creditable performance, given the impact of the Covid-19 pandemic throughout the global economy”.

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Pre-tax profit reduced by 12.1% to £7m.

Malcolm Group said in its strategic financial report that its logistics division had been less impacted by the coronavirus during the year, mainly as a large part of its customer base related to the food and drink sectors.

However, it added: “The impact of Brexit coupled with the lack of HGV testing during the Covid-19 restrictions has meant a severe shortage of HGV drivers in the UK market.”

The group said that as it entered the 2021/22 financial year, results in both logistics and construction services were well ahead of the same period the previous year: “However, both driver and supply chain shortages have had an inflationary impact in our cost base, resulting in margin pressure in certain parts of the business,” it said.