Kinaxia Logistics grew turnover by 40% last year, reflecting the full-year effect of its acquisition spree during 2017 and 2018.

However, it made a pre-tax loss of £755,540 after its investment in two major warehousing operations incurred “heavy set up costs”, relating to rent, rates, labour and fit-out expenditure.

It said significant due diligence and fee costs relating to acquisitions also hit its profitability, although the majority of these costs are one-offs.

The haulage and warehousing group reported revenues of almost £115m for the year ending 31 December 2018, an increase of £33m on the previous year.

The increase reflected its purchase of Panic Transport, AJ Maiden and Sons, Mark Thompson Transport and BC Transport in 2017, as well as general haulage, pallet services and warehousing company AKW Group in October 2018 and then North East-based Fresh Freight the following month.

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In its latest financial report, Kinaxia Logistics said it invested in a total of 440,000 sq ft of warehousing during the period, as well as a warehouse management system that will be used across the group, and this was “all part of the group strategy to develop the Kinaxia Logistics brand in the UK warehousing sector and utilise the combined management expertise from acquisitions to date".

It added: “Underlying business performance was tough across all subsidiaries as cost inflation increased heavily across the sector.

“The group has absorbed several heavy cost increases for drivers, insurance and fuel price increases during 2018.

“Caution was taken to avoid passing the majority of this on to customers but Kinaxia is now better placed to roll out a programme of scheduled rate reviews during 2019 and to establish an annual review process in the future for all customers.”

In April this year the company acquired the entire share capital of Bristol-based transport and warehousing business David Hathaway Holdings.