Premier Logistics (UK) was loss-making in the eight months to 31 December 2017 newly published accounts from the embattled group reveal.
Earlier this month the firm’s MD Lee Christopher said the logistics group would bounce back after two disastrous acquisitions and the end of work with Pall-Ex which led to a £1m loss that triggered an emergency loan from its new pallet network.
Since registering the loss in its previous reporting period (the 16 months to 30 April 2017), subsidiary company CJ Express has been placed into voluntary liquidation and several other measures to restore profitability have been taken.
The newly published accounts show that in the eight months to 31 December 2017 turnover was £11.8m, compared with £24.9m (in the 16 months to 30 April 2017).
The accounts show that following the closure of subsidiary companies DA Clayton (in December 2016) and CJ Express, the majority of group turnover in the period came from the original Premier Logistics business (£9.6m).
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The group recorded a loss of £87,174 in the period but said gross margin has improved from 17.6% (in the previous 16-month reporting period) to 20.8%.
In the statement to the accounts, Christopher predicts a “further improvement during 2018 and a return to profitability once a full year impact of these measures has taken effect”.
Measures taken include a reduction of the fleet by 20 units; development of a freight forwarding service; renegotiation of certain contracts including a rent free period on a property; a review of terms and conditions with suppliers.
