Turnover at Boughey Distribution fell during the first half of its current financial year, after the loss of a customer was not offset with enough new business.
In a statement issued today by parent company NWF Group covering the six months ended 30 November 2012, it was revealed that turnover at Boughey Distribution fell 17.5% to £18.9m (2011/12: £22.9m).
Boughey Distribution was hit particularly hard by the loss of a contract with AB World Foods in the period, which caused a 16% drop in outbound volumes.
The food distribution company has reduced its workforce by 16% since November 2011, but despite these actions NWF Group confirmed Boughey Distribution's performance remained “slightly behind management expectations”.
NWF Group chairman Mark Hudson said: “In the food division, we continue to target new customers and drive efficiency across the warehousing and distribution operations.”
Fuels
NWF Fuels was hit by “lower crude oil prices”, which saw turnover decrease by 5.1% to £171.4m (2011/12: £180.7m). Despite this, volumes remained stable at 192 million litres.
NWF Fuels also took measures to “rationalise the fleet and streamline operations” in the second half of its financial year, helping to lower operating costs and increase margins.
NWF Group pre-tax profit rose 27% to £2.3m (2011/12: £1.8m), on a profit margin of 0.8% (up from 0.6% year-on-year. Group turnover was £256.5m (2011/12: £263.7m).
