Geodis UK said its losses deepened in 2017 largely due to the “significant start-up costs” of a new site it opened in the Midlands.
Newly published financial figures for the year ending 30 December 2017 revealed that the operator increased its turnover slightly to £50.1m (2016: £49.3m) but its pre-tax loss slipped further into the red, to a loss of £4.5m (2016: loss of £4.2m).
It said there had been notable improvements in profitability in its UK core network activity – Distribution & Express – but that this was largely offset by the costs involved in launching a new site for its Contract Logistics business.
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In a review of its business, Geodis said turnover was bolstered by new customer acquisitions, despite the closure of a shared logistics site in 2016, as well as a warehouse in East London during the first quarter of 2017.
It said its European hub in Northampton had helped to transform the network during the period and added: “Contributing to the overall picture as well, the opening of a new logistic platform in the Midlands with important investments was realised to service a new customer for the Contract Logistics line of business in the UK.
“Due to the significant set up costs, this new activity did have a detrimental effect, as expected, on the overall profitability of the company.”
Geodis had not responded to a request for comment as this article was published.
