Sheffield-based DBL Logistics has predicted a record £3.5m turnover in its next financial year, following its expansion into a brand-new 33,500ft² Tinsley Park site.
Speaking to Motortranport.co.uk, the United Pallet Network (UPN) member revealed the business has been performing robustly in the past five years, with turnover up 38% cumulatively in the period.
It had a turnover of £2.88m in the year ended 31 August 2013, and pre-tax profit of £205,000. In August it revealed a "seven figure" contract win with Robinson Healthcare.
"But it's not about turnover is it?" said DBL managing director David Clarkson. "We do alright on our profit margins. If we can't make money on a job, we won't do it, we'll walk away. Being in the enviable position of being able to turn work away is fantastic. There are lots of companies out there that are doing it for nothing, but then they go bust."
Strong growth
A founding member of UPN, which Clarkson said had experienced "fantastic" growth of around 40% in the past eight months, DBL inputs around 250 pallets per day into the network for delivery nationwide by other members and receives approximately 100 back to deliver within its ‘S’ postcode around the Sheffield region.
However, Clarkson said the rapid growth of his own company had outstripped that of the pallet network, resulting in an "imbalance" between input and output of pallets into the network’s hub.
"We are continuing to sell and sell," said Clarkson. "We've grown faster than the network. Problem is, we're bang on the M1, so any of the UPN depots in Leeds, Bradford, Wakefield, Nottingham etc, are never going to put freight through a network for us to deliver, they will do it themselves.
"So we're in a great area geographically for us to deliver into Fradley Park and the area, but it's too good geographically, as other depots are delivering into our area."
Looking o the future
As a result, DBL will now look to deliver pallets further afield to cities like Nottingham, Leeds and Bradford with its own fleet.
It has also increased its O-licence by an extra 10 trucks to 25 in preparation for the business’s anticipated growth.
Clarkson said this would also help boost DBL’s profit by reducing trunking journeys, as well as give more control over its freight.
