Warehouse expansion drive sees Kammac boost turnover and profits

Kammac saw its pre-tax profit more than double last year after a strategic move to increase its warehouse capacity drove up volumes in the pharmaceutical sector.

The family firm, which specialises in supply chain management services, operates from depots in Burton, Knowsley, Manchester, Worksop and its Skelmersdale headquarters near Liverpool.

According to its latest annual results to 31 December 2019, the Skelmersdale-based haulage and warehousing firm saw a leap in turnover to £29m (2018: £22.1m) whilst pre-tax profit jumped to £1.5m (2018: £639,903) in the period.

In its strategic report to the results the company said: “There has been a 31% increase in turnover during the period which is a result of the business making strategic decisions to expand its warehouse capability in late 2018.

“The exceptional growth and new opportunities over the year within these facilities has greatly reflected in the increase in turnover, specifically in the pharmaceutical sector.”

The company added that its membership in Pallet-Track, which it joined in 2017 is delivering “steady growth” which it predicts will double this financial year.

Looking to the future, Kammac said that with the amount of business that is already secured for 2020 sales growth and profitability will be “much greater” this year.

Kammac also noted that whilst the Covid-19 pandemic had hit initially some parts of the business, overall volumes have been boosted due to “increased warehousing and value added service opportunities.”

In an assessment of the company’s other financial commitments the company noted it is the subject of an HMRC enquiry relating to duty costs, adding that the financial effect of this inquiry cannot be estimated at this time since it is not likely to be settled “in the near future".

It also noted that it is part of a class action against a number of truck manufacturers alleged to have run a price fixing cartel. It added that Kammac has a “strong claim” and expects to receive compensation in due course but cannot at this stage estimate how much that will be.

Kammac has yet to respond to a request for comment.