C Butt Logistics has delivered on last year’s promise to return to the black for the first time since 2014.
Reporting its latest annual results for the year to 28 April 2018, the Northampton–based haulier revealed a rise in profit to £27,651 (2017: loss of £461,654).
However, turnover fell in the period by more than 5% to £10.6m (2017: £11.2m).
The results confirm joint MD Jonathan Butt’s prediction in February last year that the company would return to profit in the 2017/18 financial year.
The company’s rising fortunes follow a major management restructuring that saw the departure of former MD Clive Hodgkinson, operations director Karl Hodgkinson and financial director Peter Ginn.
It also saw family members Jonathan and Robert Butt (pictured) take joint control of the company.
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Its recovery strategy included a review of the firm’s contracts, refocusing the business on the Northamptonshire area, moving to a new shared warehouse in Northampton and attaining BRC accreditation.
In its strategic report to the annual results the company said: “Positive news now the company is in profit, our balance sheet remains strong with good cash reserves.
"The business continues to generate positive operating cash flows and we believe our overall strategy remains on track to deliver continued profitability.”
Turning to its future plans the company, which has operating licences for 148 trucks and 167 trailers, added that it aims to grow turnover through the acquisition of profitable third party logistics contracts.
“We will target higher margin contracts by focusing on expanding our provision of warehousing and associated value- added distribution services whilst continuing to offer competitive transport rates through both our dedicated fleet and network partners,” the report stated.
It added that the group also planned to invest in “best in class” IT systems as well as building up its fleet and warehouse space.
In a statement supplied to MT, Jonathan and Robert Butt said: “The return to profit for the family business is very much welcome.
"Our business plan when we became joint managing directors was to steady the ship, refocus on customers and bring exciting new strategies for all areas of our business.”
The brothers also paid tribute to the contribution from the their staff, which they said had been key to the company’s performance. They added that the firm has “good order books both medium and long term”.
C Butt is preparing to announce a major contract win “shortly”.
