EV Cargo Global Forwarding has announced significant growth during 2019 and introduced cost reduction measures to ensure sustainable trading during the first half of 2020.
The company, formerly known as Allport Cargo Group, is a division of global logistics and technology business EV Cargo, which also owns CM Downton - recently rebadged as EV Cargo Logistics - and Palletforce.
In its latest accounts, covering an 18-month period ending June 2019, earnings before tax increased by over 50% from calendar year 2018 to 2019.
The business has also increased its net asset value by over 30% and reported 7% growth in revenue during the final six months of 2019.
The company admitted trading during 2020 had been impacted by the Covid-19 pandemic but it had successfully implemented a number of cost reduction measures.
While global sea and air freight volumes were initially severely impacted, it said it had benefitted from its diverse markets and global operations and has reported a steady return in volume over recent weeks.
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As with other logistics businesses that have announced results during the pandemic, the company's auditors, KPMG, noted that a second lockdown may see a significant decline in revenue and profits.
However, the report added that in this event the group would expect to negotiate a temporary amendment of covenant ratios with its lender, Investec Bank, to prevent a breach.
Clyde Buntrock, EV Cargo Global Forwarding chief executive, said: “Since its creation, the focus for EV Cargo has been on ‘sustainability through growth’ and we are pleased to report significant growth throughout 2019 in our latest company accounts. Performance in the first six months of 2020 has been hampered by the COVID-19 pandemic with volumes slowing initially as lockdowns in China and then Europe took hold.
“However swift mitigating action, bolstered by our diverse global operations, market sectors and service offerings, has meant the business has successfully traded through this period and is now well-placed going into the second half of the year.
“The agility to quickly adapt to confront the challenges, as well as a relentless focus on free cash flow, has seen the business react well to the slowdown of the global economy. We have seen a steady climb in volumes over recent weeks, especially in ocean and European surface freight which gives us cause for cautious optimism.
“Traditional air volumes remain depressed but are buoyed by highly significant PPE and medical contracts across all our key global markets. We are a highly resilient business and, while there may be more bumps in the road to come, we continue to focus on our free cash flow and on supporting our customers through these unprecedented times.”
The company will complete its phased transition to EV Cargo Global Forwarding by the end of 2020.
