The Nightfreight name will disappear from UK roads as its parent company, DX Group, revealed its fleet will be re-liveried as it strengthens the acquisition it made last year.
It has also emerged that Nightfreight contributed £300,000 of EBITDA to DX in its first 15 weeks under new ownership, albeit during its peak season, according to figures filed at Companies House.
DX bought Nightfreight in March 2012 for £11.6m. It had struggled to make money under its previous owners, Penglais Investments.
Chief operating officer Stuart Godman said: “Nightfreight was in a worse position than we anticipated, but our progress in turning around the business has been encouraging.
"We have strengthened the management team. It was an under-performing business that was not being managed the way it should have been,” he said.
Taken in isolation, results for Nightfreight show that for the seven months ending 30 June 2012 it made a turnover of £68.5m and a pre-tax loss of £12m.
However, Nightfreight has changed its year end to be in line with DX’s, and the seven-month period excludes some seasonal business.
Finance director Gary Bowes said: “Most of the losses were reflected in the pre-acquisition period and included £9m of balance sheet adjustments.”
DX accounts for the 12 months ending 30 June 2012 incorporate 15 weeks of trading activity at Nightfreight. Combined turnover was £206.6m (£169m from DX and £37.5m from Nightfreight).
Operating profit before exceptional items and goodwill amortisation was £28m. However, after exceptionals it made a pre-tax loss of £14m.
Godman expects improved performance for 2013 as it tidies up its balance sheet: “We are removing loss-making accounts though there is no plan to downsize the business.”
