CEVA Logistics saw its turnover fall by 10% last year due to the non-renewal of existing contracts.

However, figures published for the year ending 31 December 2019 showed that the logistics company increased pre-tax profits by £7.7m to almost £10m.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose to £21.8m from £15.5m in 2018 and the company said the improvements were driven by “a decreased cost base and improved financial controls”.

In its strategic report, the company explained that 55% of its revenues are generated by its top 10 largest customers and so if any one of these decided not to renew or terminate existing agreements, this could have a material adverse effect on the business.

“Contractual agreements of up to six years help mitigate this risk and the company has a good record of renewal,” it added.

“The logistics industry is competitive,” it said. “The company faces competition from a number of companies, some of which have greater financial and marketing resources.

“The company has a focussed strategy in selected sectors where it believes it has a strong reputation and competitive advantage and therefore a defensible market position.”

Despite the Covid-19 pandemic affecting CEVA Logistics in the latter part of the first quarter of 2020, it said it did not believe the long-term outlook of the company had materially changed.

“The ongoing effects of the pandemic and the required mitigating actions will continue to be monitored and evaluated by management during the 2020 financial year.”

CEVA Logistics is in the process of switching to logistics platform CargoWise, which aims to standardise and simplify its 4PL global operations.

The project should be completed by 2025.