This time last year CM Downton shocked the industry after it acquired C&H (Hauliers) from its parent company Charles Gee Group, which went into administration. By any metric, it was a fantastic acquisition for Downton, particularly when you look at the prices involved.
According to Downton’s directors’ report for the financial year ending 30 June 2013 the haulier, via new subsidiary Downton (London) acquired the trade and trading assets of C&H (Hauliers) out of administration for £350,000, alongside taking on liabilities of £329,000. That level of cash plus debt would have picked you up this spacious home in Glasgow, for example.
This is a staggering figure, considering that C&H will add an estimated £20m a year in annualised turnover, on top of Downton’s not inconsiderable turnover of £94.2m and a pre-tax profit of £5.3m it made in financial year 2013. Before entering administration C&H made a pretty tidy £2m pre-tax profit on turnover of £21.2m (financial year ending 31 March 2012).
Given their synergies in the paper and publishing distribution business, no wonder MD Andrew Downton described the buy as “too good an opportunity to turn down”.