Road tanker company Abbey Logistics is back in the black, delivering a pre-tax profit of £2.76m, after losses of £1.26m last year, as it continues to focus on its core markets.
The company, which recently landed a £3m a year bulk liquid contract with an alternative fuel manufacturer, is predicting a similar trajectory this year, estimating a turnover of £68m in 2022.
Reporting its latest annual results to 3 July 2021, Abbey Logistics said it has seen a 2% rise in turnover to £64.4m (2020: £62.9m), a £4m increase in pre-tax profits to £2.76mn and an 87% leap in underlying EBITDA to £8.6m 2920: £4.6m).
Under its ‘back to basics’ approach, launched in 2019, following a senior management restructuring, the company has focused mainly on its core markets, asset utilisation and gross margin performance.
Abbey Logistics said the strategy has held it in good stead as it faced the external pressures arising from the COVID-19 pandemic, Brexit and the driver shortage.
During the year the company also renewed contracts with several key customers, adding new volume in targeted areas and acquired Welch Hire after the year end which it says will allow it to increase its coverage in key regions in the U.K. and Northern Europe.
Abbey also reported over £5m of capital expenditure in new fleet, its washbay and IT systems during the year.
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Steve Granite, Abbey Logistics CEO said: “Our strong performance in the face of immense challenges last year gives us further confidence that our business is very robust and can withstand a variety of external challenges including COVID, driver shortage and Brexit.
“We will continue to make disciplined investments in our fleet, people and IT capabilities to ensure customer supply chains remain shielded from external pressures, but our sector still faces uncertainty ahead of us in the next 12 months, not only with the continuing impact of Covid and the driver shortage but also challenges associated with rising operational costs in areas beyond our control.
“Despite this, FY21 has given us a strong set of accounts that demonstrate the strength and depth in the business. I am encouraged by our performance and strategic direction, which combined with consistent and high demand for our specialist services, puts us in a strong position to navigate the uncertain trading conditions that we may face in the coming year.”
Matthew Male, Abbey Logistics finance director added: “Following a strong end to FY20 which saw the group return to profitability, we have maintained that performance throughout the whole of FY21 due to the improvements made over the past few years.
“These changes have provided the business with a robust platform to be able to respond well to ever-changing trading conditions.
Dave Patten, Abbey Logistics managing director said: “Whilst we were pleased with our performance during FY21, we have continued our focus on ensuring security of supply to customers during the UK supply chain challenges of recent months. We have responded by investing in driver pay and engagement, recruitment and training to ensure that we remain an employer of choice in our industry.
Mike Ellis, business development director said: “FY21 has been a very positive year and seen us secure significant contracts with new and existing customers.
“We have secured new business across both our liquids and powder divisions, as well as in our bulk powder bag to bulk facility which now manages double the volume it processes compared to last year as customers take advantage of a U.K. based reformatting solution that combines storage, reformatting and a reliable bulk transport solution as a single service.
“We anticipate further growth in this area as well as building on new volumes in bulk liquid and powder in both food and non-food sectors.”
