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The Pallet Network (TPN) has hailed its acquisition by Eddie Stobart Logistics in June 2018 as a positive move which has opened the door to “accelerated growth”.

Despite ESL's continued financial turmoil, TPN revealed that it delivered turnover of £84.3m in a reporting period spanning only eight months to 30 November 2018.

This compared to turnover of £107.2m for the full year to 31 March 2018, while pre-tax profit in the period stood at £3.2m (March 2017: £5.4m).

In its strategic report to the results TPN said: “Being part of ESL positions the business well to further extend and evolve its offer to both members and their customers alike.

“The complimentary nature of the new ownership further facilitates and accelerates the business’ plan for continued growth and to be recognised as the number one pallet network.”

The report added that TPN had seen strong revenue and volume growth in the period with service levels also rising “during a period of strong pallet growth".

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TPN was bought for £52.8m by ESL on 29 June 2018. A year later financial troubles at ESL saw the company’s shares suspended, a profits warning issued and chief executive Alex Laffey stand down.

After being bought by DBAY Advisors in December last year - which saved the company from going into administration - the haulier is still struggling to return to the black.

Last month its latest interim results revealed a loss before tax of £199.8m in the six months ending 31 May 2019.

TPN’s acquisition saw a cash payment of £44.14m payable with the remaining £8.66m payable to "certain sellers over a period of two years following completion".

The sellers were listed as LDC, Neil England and the TPN management team of Mark Duggan, Paul Robinson and Mark Kendall.

At the time of sale, TPN had processed more than 3.9 million pallets in the year ended 31 March 2018.

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