Bibby Distribution Services (Holdings) slipped into the red to the tune of almost £4m
in the year to 31 December 2012, compared with a £4.5m operating profit the previous year.
This was the result of a £7.5m loss at its subsidiary System Training.
Bibby Distribution chief executive Iain Speak said the distribution business made a “reasonable” profit considering it was still incurring restructuring costs after a series of acquisitions in the past three years.
Speak said action had been taken to arrest the losses at System, including slimming the network from 20 to 12 sites, and strengthening a senior management team now headed by MD Nigel Barton.
“System is pretty much sorted out now and won’t lose anything this year,” he said.
Under MD Paul Kavanagh, Bibby Distribution is still expanding quickly and has won £30m of new business so far this year – making up for the turnover lost when retail buying group Nisa switched its distribution to DHL in March 2012.
It is expected to account for more than £250m of about £350m group revenues in 2014, and will continue to increase profit in line with turnover.
Restructure
The firm is restructuring its operations, creating a new holding company that will include three divisions: Bibby Distribution Services, Bibby International and Bibby Support Services.
System Training will be part of the new Support Services, alongside driver, warehouse and production agency staff business Direct Workforce.
As well as continuing to expand Distribution Services, the group wants to see its international freight forwarding business grow significantly.
Neil Gould has been appointed MD of Bibby International with a remit to expand it into a £50m-a-year operation.
Bibby recently extended its contract with Ultraframe.
