Malcolm Group saw its turnover increase "substantially" in 2021 as the economy emerged from the Covid-19 pandemic restrictions, with pre-tax profit surging by a fifth.

However despite seeing activity levels boosted in the first six months of this year, compared to the same period in 2021, Malcolm Group’s operating margins remained under pressure from energy prices and inflation, the company revealed in its latest annual results.

The group, which employs around 1,930 staff, has operating licences for 748 trucks and 1,167 trailers.

It runs a logistics division, a construction services division and and waste management division and is based in Linwood, Renfrewshire, Scotland.

In its annual results to 31 January 2022 the group reported that turnover increased “substantially” in all three divisions as the economy recovered from the impact of Covid-19 in 2020.

Turnover leapt by 19% to £230.6m (2020/21: £193.8m) whilst pre-tax profit in the period soared by 20% to £7.2m (2020/21: £6m).

In its strategic report to the results the group said that during the financial year the logistics operations had "remained strong."

However the impact of Brexit and the lack of HGV testing during the Covid-19 restrictions had created an inflationary impact on the division’s cost base, resulting in margin pressure, the report said.

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In the construction services division activity levels were “significantly ahead” of 2021, the report noted, as the company recovered from the almost total shutdown of construction sites for the first three months of the pandemic restrictions in 2020.

The report stated: “As a result of a return to pre-pandemic activity levels the divisional operating performance also showed an improvement against the prior year.

"Going into 2022 the group has seen activity levels in both its logistics and construction services divisions in the first six months ahead of the same period in 2021" it added, but warned that the energy crisis and inflation are continuing to bear down on operating margins.

The group remains confident of its performance in 2022, stating that with net cash of £28.6m at 31 January 2022, compared to £17.9m in the previous year, it remains "well postioned" to take advantage of new business development opportunities, despite the current economic headwinds.

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