Brexit bureaucracy could put further dent in profits, admits EM Rogers

Northampton-based EM Rogers (Transport) said its Dutch business was expected to have “an increasingly significant role” as it looked to an uncertain future post-Brexit.

In its latest financial results for the year ending 31 January 2020, the haulage and truck sales firm said increased border controls would have a damaging effect on the company’s ability to maximise profits and it remained to be seen how much it would be impacted by any increase in bureaucracy.

But it added: “However, the directors are confident that they are well placed as any to cope with any new regulations.

“In particular, the Dutch subsidiary is expected to have an increasingly significant role to play in the future.”

The company’s review of its business came as it reported a 1% reduction in turnover to £25.1m during the period.

Haulage and transport accounted for most of this, with revenues falling 8.9%. Conversely, vehicle sales turnover rose by 16% to £9.1m.

The company’s pre-tax profits fell 48% to £817,000 (£1.6m).

EM Rogers (Transport) said there had been an increase in costs generally in 2019, which had affected stated profits.

It added that cash generation remained strong, but Covid-19 had hit sales: “Trading has now resumed at a slightly lower level, but the directors have assessed the future trading and cash position,” it said.

“They are as confident as reasonably possible about the future.”

The company holds an international licence authorising 56 lorries and 92 trailers out of an operating centre in Northampton, with EM Rogers Transport BV in Holland operating around 20 vehicles.