Rising demand for warehouse space and a welter of contract wins helped boost Howard Tenens’ group turnover from £57.1m to £64.7m in the year to 30 September 2014.
However the cost of updating the company’s transport and warehousing software depressed profits in the period.
The company’s annual results for the year to September 30 2014 showed pre-tax profits declined from £3.9m to £3.5m and operating profits down £1.5m to £3m.
Jamie Hartles, a director at Howard Tenens and head of logistics, told Motortansport.co.uk that a write off of ‘significant’ software costs had cut profit.
Hartles explained: “The company charges software investment costs against profit when incurred. Howard Tenens has invested in advanced warehouse and transport management systems to underpin its logistics activities.
“The investment in JDA Dispatcher and Ortec will enable the business to maintain its position in the marketplace and offer enhanced services to its customer base.’
The roll out of the new software, which began last year, is expected to be completed by 2016, resulting in a standardised system across the business.
Warehousing
The company said high occupancy levels in its warehousing facilities, new business wins in London and Swindon and rising demand for warehouse space in a market with limited supply had boosted turnover in the period.
Hartles added: ‘The success in warehouse fill has been driven through successful targeting of new business, but also through a constriction in the logistics market for available warehouse space. This has meant that the business has benefitted as supply reduces and demand increases.’
Asked how Howard Tenens is performing in the current market, Hartles said: “The outlook for 2015 is looking promising as the logistics business realises the benefits of its investment in systems, develops existing staff whilst recruiting new high calibre individuals and grows its customer base in a sustainable and profitable manner.”
- New recruits to the firm include Malcolm Cooper, former iForce FD, who took up the role of financial director in December 2014 and Nick Capell, former CityLink chief information officer, who joined the firm in April as IT director.
By Carol Millett
