S&S Distribution’s fleet investment programme and the loss of a local customer that relocated contributed to a fall in turnover and profit last year.
In its latest annual results to 30 June 2017, Tonbridge, Kent-based S&S Distribution, which was bought by Palletline in May 2015, reported an 2.5% fall in turnover to £7.8m (2016: £8m) and an 17.7% fall in pre-tax profits to £269,896 (2016: £328,191).
Palletline financial director Mark McColl told MT that Palletline is very happy with the performance of S&S Distribution which he said is making a strong contribution to the Palletline group under the leadership of the firm’s MD Richard Ball and S&S Distribution’s management team which Palletline kept in place after the takeover.
McColl said S&S Distribution had performed well in the financial year, with underlying profit increasing in the period.
“Turnover was reduced by the loss of a local customer that relocated out of the area and the company has reduced its costs appropriately, ” McColl said.
He added that the firm had also made a £491,000 investment in renewing its fleet, which had also impacted on the bottom line.
“We have encouraged Richard to continue to invest in the business and the fact that S&S Distribution made a £200,000 dividend to Palletline last year speaks for itself. The firm is very cash positive but it certainly helps that S&S Distribution is part of the Palletline group and along with our other acquisitions, we are now starting to get synergies throughout the group.”
Other Palletline acquisitions include Mike Watson Transport, which the pallet network bought in September 2016 and ABE (Ledbury), purchased in February last year.
S&S Distribution, which operates from its headquarters in Tonbridge in Kent, employs 90 staff and specialises in palletised distribution and warehousing. It has an operating licence for 60 trucks and 60 trailers.
