Meachers Global Logistics is set to invest £1.9m in new vehicles this year after seeing turnover and profit “exceed expectations” last year.

Meachers Global Logistics, which has its headquarters in Southampton provides national and international freight and transport logistics services, including freight forwarding, supply chain management, UK warehousing, distribution, training, logistics transport and contract management. It has operating licences for 150 trucks and 200 trailers.

According to its latest financial results for the year to 31 May 2022, turnover increased 55% rising to £55.3m (2021: £35.7m) while pre-tax profit rose by a third (33.8%) in the period.

Turnover from the rest of the world accounted for £2.2m of total turnover, up from £1m in the previous year.

However the company, which employs around 190 staff, is warning that mounting pressures, including a looming recession, fuel price rises, rising commercial rents and a shortage of warehousing could all impact on its future profitability.

Despite improving turnover and profit the company’s review of the business cautioned that some additional revenue over the year was atypical since it was a result of the pandemic, adding that “this is not expected to be repeated in subsequent financial periods.”

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The review added that measures taken to protect the company during the pandemic such as payment holidays on hire purchase and contract maintenance arrangements, the Government’s VAT payment deferral, the furlough scheme and extended credit terms on significant items of expenditure have all now ceased.

Turning to the future, the business review said that the company is continuing its investment strategy which saw over £1.8m invested in new equipment in the year. This year another £1.9m is committed which will be spent on upgrading the fleet with new vehicles.

It added that whilst the directors are confident about the future of the company, the fact that the Bank of England is warning of an imminent recession, “may impact on future profitability.”

It also noted that rising commercial property rents, the short supply of premises and unprecedented fuel costs are also continuing to put pressure on prices, whilst the impact of the Covid-19 pandemic isaffecting those parts of the business involved in the travel and hospitality sectors.