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A significant number of contract wins in XPO Logistics’ Supply Chain and Transport Solutions divisions more than offset a decline in dry bulk volumes during XPOs first full financial year of trading since it acquired Norbert Dentressangle in 2015.
2016 saw XPO win contracts with Performance Doorset Solutions and toy manufacturer VTech, as well as manage a pan-European DC for Ted Baker but its major win was the transition of the management of Iceland’s warehousing and distribution operation from DHL Supply Chain in a £500m, five-year deal in March of that year.
It also extended its contracts to: deliver to Co-op stores across the south of England and Wales; provide reverse logistics to Asda Walmart; provide warehousing to Sealed Air Corporation and provide next-day deliveries for Moores Furniture Group.
Combining the interests of its three major businesses in the UK: XPO Supply Chain UK; XPO Transport Solutions and XPO Bulk UK, XPO ranks third in the Motor Transport Top 100 2016.
XPO’s Supply Chain UK division saw turnover rise 14.8% to £872.6m (see table below) for the year-ending 31 December 2016, while pre-tax profit increased 16% to £27.5m, according to its most-recent filings at Companies House.
It said that average employee numbers increased to 13,752 due to “higher than forecast new business wins”.
XPO Transport Solutions UK turned a £8.9m pre-tax loss into a £2.7m profit as turnover rose 4.8% to £303.7m.
XPO Bulk UK however saw its turnover dip 3.6% to £80.9m, which the company ascribed to “reduced volumes with existing customers, particularly in the dry bulk road sector, of £4.6m”. Pre-tax profit however rose 169.5% to £4.6m. This was aided by the sale of its share in industrial packaging firm NCG UK to joint venture partner Mauser, which realised a profit of £518,000.
In June 2016 Eddie Stobart Logistics replaced XPO Logistics as the logistics partner for Aggregate Industries' Concrete Products division. The five-year contract began in October 2016.
XPO LOGISTICS: Year-on-year performance comparison for UK road transport interests
| 2016 | Turnover (£) | Pre-Tax Profit (£) | Employees |
| XPO Supply Chain UK | 872,565,000 | 27,550,000 | 13,752 |
| XPO Transport Solutions UK | 303,744,000 | 2,715,000 | 2,222 |
| XPO Bulk UK | 80,901,000 | 4,638,000 | 793 |
| Total | 1,257,210,000 | 34,903,000 | 16,767 |
| 2015 | Turnover (£) | Pre-Tax Profit (£) | Employees |
| XPO Supply Chain UK | 759,682,000 | 24,165,000 | 12,237 |
| XPO Transport Solutions UK | 289,590,000 | -8,941,000 | 2,074 |
| XPO Bulk UK | 83,910,000 | 1,721,000 | 811 |
| Total | 1,133,182,000 | 16,945,000 | 15,122 |
NB: Excludes XPO Maintenance UK
