Fred Sherwood Group is looking at ways to expand the business after rising costs saw both profit and revenue fall in 2023/24, its latest annual results have revealed.
The family-run firm, which has its headquarters in Shepshed, Leicestershire, operates a fleet over 300 trucks and trailers and specialises in waste haulage and bulk transport.
It also has a workshop and training facility at its Shepshed site and dry cargo storage facilities. The group employs just under 400 staff.
Fred Sherwood Group reported a £27m fall in revenue in the year to 31 March 2024 to £78.3m, whilst pre-tax profit decreased by £1.4m to £5.4m, which the strategic report to the results said was “still considered another strong return overall”.
The report added that the group has continued to invest heavily in revitalising the fleet with investment in lorries and trailers of just under £13m.
It added that net assets increased by £3.3m to £50.8m and noted that “cash reserves are in line with expectations and the group continues to operate within its available facilities”.
The report continued: “Overall the group is in a strong position to withstand challenges and take advantage of opportunities to develop existing and potential contracts and revenue streams as they arise.
“The group is focused on investing in driver training and technology to achieve efficiencies, reduce the risk of incidents and reduce its environmental impact. The directors are mindful of these responsibilities and are pleased with the progress made during the year in these areas.”
The report added that it was making investments to cut its carbon emissions. It said: “A commitment in the previous period to purchase solar panels to reduce the group’s environmental impact has been a huge success in reducing our carbon footprint.
“The group has continued to invest in green technology, with solar panels being fitted to roof space at subsidiary sites and investment units. The group have also signed leases after the year end to take advantage of electric lorries to further reduce our carbon footprint.”
Looking ahead the report noted that the group “continues to explore ways to expand the existing business and other opportunities as they arise”.
Within the group the performance of its subsidiaries varied. F.Sherwood & Sons (Shepshed) reported a fall in revenue of approximately £104,000 in the period to £14.8m and a pre-tax profit of £147,252 during the year, which it attributed to the fall in fuel costs.
The subsidiary said it is focused on investing in driver training and technology to achieve efficiencies and is “actively seeking new contracts and focusing on driver recruitment to restore revenue levels and margins”.
Meanwhile Fred Sherwood & Sons (Transport) reported a 7.5% drop in revenue to £37.7m (2023: ££40.8m), with pre-tax profit plunging by 73% to £380,456 (2023: £1.4m).
Group subsidiary George Varney (Bulk Services) revealed a revenue fall of £909,000 in the period, to £10m, and a pre-tax loss of £15,000 (2023: £218,000), which the subsidiary attributed to rising insurance, driver and administrative costs.
In contrast, Bulk Freight (Midlands) reported a slight increase in revenue to £0.7m in the year.
However the company’s strategic report revealed that increased administrative expenses led to pre-tax profit decreasing by £0.7m to £1.04m.
A request by MT for comment from Fred Sherwood Group on its latest results has yet to receive a response.
