Kammac saw revenue leap by more than a third last year as demand for storage and additional services in the pharmaceutical sector grew.

The family firm, which was founded by MD Paul Kammac in 1988, operates depots in Burton, Knowsley, Manchester, Worksop and its Skelmersdale headquarters near Liverpool.

The 3pl specialises in storage and distribution for the healthcare sector, contract logistics, warehousing, distribution, onsite logistics and contract packing and is a member of the United Pallet Network.

Reporting its annual results for the year to 31 December 2021, Kammac revealed a 36% increase in turnover to £67.6m (2020: £49.6m).

The company’s UK turnover rose to £65.6m from £47m in 2020, whilst European turnover fell to £1.8m (2020: £2.6m). A new stream of revenue from North America contributed £180,556 in the period.

Despite seeing boosted revenues,Kammac's pre-tax profit remained almost static in the year at £7.5m (2020: £7m), largely due to a rise in sales costs and administrative expenses. Sales costs rose to £35.1m in 2021, from £26m in the previous year, whilst admin expenses peaked at £25.1m (2020: £16.3m).

The strategic report to Kammac’s results said the profit level "reflects a steady state position after recent rapid growth in prior years." It also attributed the 36% rise in turnover to securing “new opportunities in 2021 and the growth of existing contracts” in the period.

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It added: “This has significantly been reflected in the increase in turnover, specifically in the pharmaceutical sector where there has been continued growth due to the requirement for storage and value added services.

Kammac, which employs around 460 staff, also saw its logistics and pallet network revenue percentage increase in 2021 after landing new deals and also retaining business with existing customers, the report noted.

The company also acquired “several well positioned warehouses” in the second half of the year, adding 700,000 square foot of storage space to its portfolio. The additional space was used to facilitate “new key clients” and to support existing customers needing additional warehousing.

Kammac said the business closed the year with a strong balance sheet and healthy cash flow position.

Looking ahead the strategic report said: “The profits in 2021 are reflective of a full year's trading. With the amount of business that is already known to be secured for 2022, and the company's continued desire for new opportunities, it is anticipated that the sales growth and profitability should be greater in 2022.”

It added: “The business has continued to sustain performance at the start of the trading year for 2022, with several key contracts secured to continue throughout the year.”

A request for commentfrom Kammac has yet to receive a response.

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