Circle Express’ losses deepened last year despite volumes recovering to 80% of pre-pandemic levels.
According to its latest results for the year to 31 March 2022, the West Drayton-based express delivery firm saw revenues rise to £24.2m (2021: £22.1m). However its pre-tax loss deepened to -£4m (2021: -£1.7m), exacerbated by a “one-time expense charge” of £1,357,000 in the period.
In its strategic report to the results the company remained positive, noting that air freight - its primary sector - had recovered to 80% of its pre-pandemic volume levels during the year whilst diversification into other sectors had resulted in new wins as well as an overall increase in demand for the company’s core services.
However it revealed that both wage and fuel inflation had taken their toll on the business, leading to increased service costs during the year.
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In addition a review of future benefits from short-term assets, carried out in light of the current economic uncertainty, had resulted in the company writing down £1,357,000 “as provision against increased uncertainty”.
The company said it is mitigating the impact of these challenges by seeking “operational efficiencies” across the company and by increasing its investment in service delivery which the report said has enabled Circle Express to minimise the level of surcharges levied on customers and price increases.
Despite these challenges, the report remainsed upbeat, noting the firm’s resilience throughout the pandemic. It added that with support from its parent company Rico Logistics, it is confident that the company will “regain profitability in the near term”.