Cost control and volume growth sees turnover and profit up at Rhys Davies Logistics

Rhys Davies & Sons saw both turnover and pre-tax profit rise last year, through a mixture of cost control and volume growth.

The Cardiff-headquartered operator saw turnover for the year ended 31 August 2013 rise by almost 4% to £39.3m (2012: £37.8m), accounts published to Companies House reveal.

Pre-tax profit at the firm jumped by nearly 6% to £1.1m, up from £1m the year before, with a slight increase in margin to 2.8%.

In a statement, the directors said they had focused on areas of the business that had previously been loss-making, as well as productivity and cost control.

However, the directors said the market in certain areas; mainly insurance, capital costs, maintenance contracts and tyres, was “firmer than anticipated”.

The operator, which recently rebranded as Rhys Davies Logistics, said it had received “pleasing feedback” about its new identity, which it said was “far from merely adding a cosmetic freshening of the company’s livery”.

“The directors wanted to reflect and emphasise the values and qualities that are important to us, and that are cherished by our customers,” the directors report stated.

The firm said it remained focused on improving operational efficiency, as well as building long-term relationships with clients.

“Whilst we acknowledge any improvement in the current climate is to be welcomed, the board continue to be mindful that the fiercely competitive logistics market can yield unrealistic expectations of what constitutes a sustainable margin,” the directors said.

• To read the full Top 100 for 2013 go to motortransport.co.uk/top100