Gefco expects its UK arm to be profitable in 2012, as it prepares for the beginning of a major seven-year contract with General Motors that begins in January.
The automotive logistics specialist narrowed its losses in the UK for the year-ending 31 December 2011 to £324,000 from £3.7m in the previous year. Turnover fell slightly from £114.5m to £112.5m.
Sales and marketing director John Stocker told MT that the losses were a legacy of the 2006 closure of Peugeot’s plant at Ryton near Coventry. He added that the firm remained profitable at a group level and would show a year-on-year profit in 2012.
“Luckily for us the automotive sector in the UK is picking up. Yes, registrations are not where we would want them to be, but the UK is exporting vehicles,” said Stocker.
Despite PSA Peugeot Citroen selling a 75% stake in its logistics arm to JSC Russian Railways for €800m (£640m), Stoker said: “PSA is our core, but we want to extend our boundaries.”
In July Gefco signed a seven-year contract with General Motors to manage inbound and outbound logistics for the US car maker across Europe.