Growth in the temperature-controlled division at Turners (Soham) offset falls in its tanker division, with the operator also reaping the benefits of its 2012 acquisition of Browns Distribution.
Overall group turnover rose to £242.1m in the year ending 28 December 2013, from £235.8m in the previous financial year. Pre-tax profit fell to £22.8m from £23.5m.
However, turnover in its temperature-controlled division rose from £81m to £104m, while its tanker division fell from £109m to £93m. Its general haulage operations activities were almost static at £45m (£46m).
MD Paul Day told MT that Browns had fitted in really well with its refrigerated operations network. “Browns has been fully integrated with Turners’ existing market operation at Donington and this has driven service and operational benefits. Considerable time, effort and investment has been put into Browns, but we are now seeing the benefits.”
He said Browns’ contribution to the business accounted for £20m of the £23m increase in refrigerated operations, and that its tanker business also included four months of contribution from its acquisition of Lewis Tankers in August 2013, for approximately £3m.
Day said: “As with Browns, time, effort and investment is going into Lewis. It may take longer than Browns to drive benefits, but in the long term it will again prove a successful acquisition.”
However, the loss in its tanker business was wholly attributable to wholesale fuels supplier Greenergy deciding to bring its transport operations, including Sainsbury’s business, in-house (as Greenergy Flexigrid).
Day added that 2014 had seen a quiet start but since April the company had seen “sustained, increased activity levels”.
Turners has begun the next phase of its cold store development in Newmarket to cope with increased demand in frozen and chilled storage and distribution.
“We will also be extending our packhouse facilities there by 50,000ft2 in the coming weeks. Again, this is to cater for increased demands for these packing services,” Day said. “We will be investing £15m into these two developments to improve the business over the long term.”
“Overall, I’m happy with the results, slightly increased turnover with a slight drop in profit. This reflects the tougher market conditions, but in spite of this the shareholders continue to invest in the business for the long term,” Day added.
