Knights of Old halves losses and eyes quick return to profit

Knights of Old Group has insisted it is on course to return to operating profitability this year after its latest results showed a £1.2m pre-tax loss.

It said new deals in the contract distribution sector and the acquisition of Steve Porter Transport in August 2019 will help the business return to profit.

Group turnover for the year ending 31 May 2019 rose to £58.6m from £56.3m the year before.

It also more than halved its losses, after posting a £2.9m pre-tax loss in 2018.

It reported an operating loss of £0.8m, but this was a £2.4m improvement on the previous year.

Its latest results are a significant improvement on the last two years, since “the material misstatement of information presented to the board” in 2017.

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At the time, group director Paul Abbott told motortransport.co.uk that the information presented appeared positive, but was actually the opposite.

The group said new contract wins during the period were in excess of £7m, with a further £8m secured since the balance sheet date.

It added that the purchase of Steve Porter Transport “will add incremental revenues in excess of £8m on an annualised basis” and that this, together with operational efficiency improvements and a continued reduction in fixed and variable costs, would result in a projected return to operating profit.

It warned that Brexit, a competitive industry and a weakening retail sector were its principal risks and uncertainties.

No-one from Knights of Old responded.