Maxi Haulage blames profits slump on pre-Brexit stockpiling

A prediction last year by Maxi Haulage that pre-Brexit stockpiling would hit its bottom line has proven correct after its latest financial results showed a reduction in the Irvine headquartered company’s turnover and profits.

However, it also said profitable trading had been restored - until the Covid-19 crisis hit and it was forced into a temporary reduction in haulage activities.

Its latest set of results for the year ending 30 September 2019 showed that the company’s revenues fell from £66.3m in 2018 to £63.4m.

Pre-tax profit dropped 96% to £73,629.

In its business review the company said the “severe adverse effects of pre-Brexit problems” led to the reduction in turnover and profit.

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These problems “had a major impact on our business, meaning very large daily fluctuations in our workload, causing peaks and troughs.

“Our business to and from Ireland suffered major imbalance issues with a huge increase in demand to Ireland whilst demand into the UK declined.

“In order to maintain high customer service levels this had a significant impact on costs and led to large losses on our work in this area.”

The report added that post year end, the situation improved, but then Covid-19 struck: “Several customers closed or greatly reduced their business but many customers in essential service sectors continued and we maintained the necessary high levels of service for this business,” it said.

“Lessons were learnt from the Brexit issues and we are still budgeting for a profitable following year.”