Expect Distribution delivered another year of revenue growth in 2022, boosted by increased activity in its contract logistics and warehousing divisions.

However “significant” financing costs saw a fall in pre-tax profits, according to the company’s latest annual results.

The Palletline member employs over 350 employees and operates a 140-strong fleet. It has three warehousing sites in West Yorkshire, which provide 70,000 pallet spaces.

Clients include fast moving consumer goods brands Boost Drinks and Astonish, national retail chain Card Factory, Stores Direct, as well as major customers in the pharmaceuticals, construction, automotive and office furniture sectors.

In its latest financial results for the year to 30 November 2022, the company revealed a 13.3% revenue rise to £46m (2021: £40.6m) whilst pre-tax profit declined to £3.8m (2021: £7m).

Expect Distribution’s strategic report to the results hailed “another progressive year of growth arising primarily from long term, contracted business within the contract logistics and warehousing divisions.”

It added: “Headline revenue growth for the year was £5.39m (13.3%), when compared to 2021” adding that whilst pre-tax profit fell by £3.2m in the year “due to a significant increase in financing costs” EBITDA grew by £942,000 (22.1%).

The report also said that industry pressures and high levels of inflation had resulted in “significant" cost increases across the business in 2022.

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 During the year the company invested substantially in its leasehold warehousing at its Thornton Road site in Bradford, to create additional capacity to meet growth within the division.

The report added: “The investment unlocked opportunity for new customer relationships and a significant number of newly created job roles within the business.”

Looking to the future, the company said it is continuing to focus on the contract logistics and warehousing divisions with “significant” new contract wins contributing to year-on year-revenue growth.

In April this year the company won a large, four year warehousing contract with pharmaceutical manufacturer Thornton & Ross.

The report added: “Contracted business continues to be our significant growth area which offers security for both parties and a partnership which consists of continuous improvement.”

The company which employs around 357 staff, said it has also ensured pay rates remain in the upper quartile of the market.

“It is as important as ever that our colleagues are appropriately remunerated given current cost of living increases, but also that our benefits package remains industry leading and contributes to their well-being accordingly,” the report added.

This year the company said it is continuing to focus on long term partnerships with new and existing customers, whilst investing “heavily” in the workforce.

The report concluded: “The economic uncertainty will bring its challenges as with any business, but the directors are confident that we have the strength to navigate through and continue with the path of positive growth within the business.

“Our priorities continue to remain the health, safety and well-being of those employees and on delivering strong service levels for all our customers”