As Kinaxia’s stable of subsidiaries report their 2021 results, chief executive Simon Hobbs praised their overall performance but warned of a tough peak season ahead, as fuel price rises, the cost of living crisis and the Ukrainian war begin to bite.
Launched in 2012, Kinaxia’s acquisitions include Bay Freight,William Kirk, NC Cammack & Sons, Foulger Transport, Lambert Brothers Haulage, Panic Transport (Contracts), AJ Maiden & Son, Mark Thompson Transport, BC Transport 2017 - which is now dormant - AKW Global Logistics, Fresh Freight Group and David Hathaway Transport.
Of the 11 active subsidiaries in the group only Lambert Brothers, acquired in 2015 reported a loss in the year to 31 December 2021.
Pre-tax profit at the Hampshire-based company was -£1.3m, (2020: £5.7m), with turnover also falling to £10.8m (2020: £12.8m).
Hobbs said: “Lambert had a problematic year. We changed pallet networks and it was the wrong decision and now we are about to revert back to the previous network. The move meant the company was servicing an area with too much stem mileage.
“However Lambert Brothers is trading OK now and as of now we do not have any loss-making businesses.”
Kinaxia’s acquisition of Macclesfield-based BC Transport in 2017 saw its assets transferred to the group’s subsidiary William Kirk, which has helped boost the haulier’s performance.
The company reported turnover rising to £8.5m in 2021 (2020: £7.1m). Pre-tax profit was back in the black at £7,053, from a loss of -£2,645 in the previous year.
David Hathaway Transport also put in a strong performance in 2021, more than doubling its pre-tax profit, aided by strong trading in the UK.
The Bristol-based haulier, acquired by Kinaxia in 2019, operates around 60 vehicles, more than 100 trailers and 128 full time staff.
In its latest annual results the transport, distribution and warehousing company’s turnover jumped to £16.8m (2020: £15m), whilst pre-tax profit more than doubled to £382,916 (2020: £188,002).
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Foulger Transport also put in a strong performance, delivering turnover of £15.5m (2020: £14.3m) and pre-tax profit of £201,581 (2020: £83,549).
However AKW Global Logistics, based at Trafford Park, Manchester, saw its pre-tax profits fall due to the effect of an exceptional item relating to a property sale in 2020 which boosted that year’s profits by £7.4m.
In 2021 the company saw its turnover fall slightly to £15.6m (2020: £15.9m) whilst pre-tax profit plunged from £7.4m (2020: £223,492).
All Kinaxia’s subsidiaries are currently benefitting from the launch of a group procurement initiative this year which combines the group’s buying power by combining the number of suppliers - and their invoices - rather than sourcing suppliers locally.
Hobbs said while performance in 2022 has been stronger, the group is on the alert for the widely predicted economic recession.
He said: “We are up on last year in terms of volume, revenue and operating profit and we are in an OK position but I am a little suspect of the next four months.
“Parcel delivery business volumes have seen a drop and we will probably see a shorter peak period.
“Network traffic is also marginally down so we are being watchful. Everything says we should be going into a recession but we have not seen it yet. We are just keeping a careful watch.
“Fuel is obviously a problem - up 40% to 45% from January this year. We are passing that on via surcharges but it is a challenge.
“So is the continuing driver and warehousing skills shortage. If we were to have an enormous peak it would become an issue. However as volumes may not pick up in the next four months we think the industry will be able to limp along.”
Despite these headwinds, Hobbs remains cautiously bullish. “We are in a good position. We are on budget and we are focusing on the next four months, taking daily and weekly metrics, and so far we have not seen a sign of recession.”
ANNUAL RESULTS TO 31 DECEMBER 2021
David Hathaway Transport:
Turnover: £16.8m (2020: £15m)
Pre-tax profit: £382,916 (2020: £188,002)
Foulger Transport
Turnover: £15.5m (2020: £14.3m)
Pre-tax profit: £201,581 (2020: £83,594)
AKW Global Logistics:
Turnover: £15.6m (2020: £15.9m)
Pre-tax profit: £223,492 (2020: £7.4m)
Lambert Brothers:
Turnover: £10.8m (2020: £12.8m)
Pre-tax loss: -£1.3m (2020: +£5.7m)
N C Cammack & Son:
Turnover: £9.4m (2020: £8.4m)
Pre-tax profit: £293,098 (2020: £502,829)
Bay Freight:
Turnover: £9.3m (2020: £8.8m)
Pre-tax profit: £6,245 (2020: £175,241)
William Kirk:
Turnover: £8.5m (2020: £7.1m)
Pre-tax profit: £7,053 (2020: -£2,645)
Panic Transport:
Turnover: £18.2m (2020: £17.1m)
Pre-tax profit: £193,152 (2020: £222,762)
Maidens of Telford:
Turnover: £10.3m (2020: £10m)
Pre-tax profit: £451,313 (2020: £100,251)
Mark Thompson:
Turnover: £38.4m (2020: £31m)
Pre-tax profit: £763,167 (2020:1.7m)
Fresh Freight:
Turnover: £19m (2020: £15.1m)
Pre-tax profit: £162,112 (2020: £62,038)
