The Howard Tenens group reported a 5.6% increase in turnover in its latest accounts, driven by work in its logistics division.

For the year ending 30 September 2021 the warehousing, distribution and property development firm generated £112.3m in revenue, compared to 2020’s £103.6m.

Howard Tenens Logistics saw turnover increase by 12.7% to £84.4m from £74.8m and pre-tax profit jump to £3.6m (£268,000).

It said that the UK logistics industry was being subjected to “unprecedented times” with the pandemic, Brexit and IR35 rules hitting the sector hard and creating a trading period “full of economic turmoil”.

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In a business review it said: “These factors have given rise to an increase in our cost base, adding pressure to our margins.

“The overall gross profit margin has dropped 1% from the prior year, however, at operating profit the reduction is just 0.2%.”

During the period, the trade and assets of its loss-making subsidiary, Howard Tenens (West London) were hived up into its logistics company.