Pre-tax profit at Nagel Langdons took a hit last year as it saw an increase in lower-margin business.

MD Arran Osman told Motortransport.co.uk that the company focused on delivering a high-quality service for its customers in 2015, which came at a cost.

He said the operator was “overwhelmingly satisfied” with its annual accounts for the year to 31 December 2015, which showed a 7.1% dip in pre-tax profit to £3.8m (2014: £4.1m) and a 5.9% increase in turnover to £99.8m (2014: £94.2m). The company’s margin dropped from 4.3% to 3.8%.

“That is unique to our stage in our development,” Osman said, “Our model is based on quality, which comes at a cost.”

He said the company’s turnover has almost doubled over the last five years. He said its fleet - which is comprised of 283 artics, 99 rigids and 376 multi-temperature trailers – grew 10% over the last two years.

In the directors’ strategic report accompanying the accounts, the food and drink haulier said it has seen a rise in work from discount supermarkets and wholesalers such as Booker Group.

It intends to increase site capacity in the next few years. Osman said it is looking at major expansions to existing sites rather than opening in additional locations and is planning to replace its 40,000ft² Liverpool site with a minimum 100,000ft² facility nearby.

“That is currently with our parent in Germany, but we will be very disappointed if that doesn’t happen in the next 12 months,” Osman added.

The company’s HR manager Colin Snape, who led the industry's Trailblazer apprenticeship bids, is to leave the business this summer. Osman said the company is currently advertising for his replacement.

“Colin has been very important in terms of our training plan and developing apprenticeships for drivers and warehouse staff,” said Osman. “The apprenticeships have been a great success.”

Nagel Langdons has been shortlisted for the Temperature Controlled Operator of the Year award at this year’s MT Awards.

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