Arcese UK back in profit as new customs rules trigger investment opportunity

UK and European logistics firm Arcese UK benefitted from the post-Brexit trading environment last year, with demand rising for its customs clearance services.

It meant that the company returned to the black with a £629,000 pre-tax profit (£1.3m loss) for the year ending 31 December 2021.

Transport and logistics revenue also increased by 23% to £23.7m, which it attributed to new contract negotiations and volumes increasing.

In a review of the business, Arcese UK said it had continued the more positive upward trend it was experiencing in H2 2020 and added that it had seen “a positive market change at the beginning of 2021 as a direct impact of the new customs regulations post Brexit.

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“The initial effect had seen a vertical demand of customs clearance services in both import to UK and export from UK, which was immediately seen as a new business opportunity and led the company to new investments in this sector.

“The company has also improved the gross margin year on year by around 30% and continues the firm cost control on both fixed and variable costs.”

It said: “The outlook is relatively buoyant for 2022 and beyond as the company continues to strengthen its UK position in the market.”

Arcese UK said that the pandemic was not now considered to pose such a negative influencing factor on volumes going forward; however, it added: “The company’s business means that it is exposed to the risk of its performance being impacted by the worsening of the war in Ukraine.”