Ceva Ground Logistics UK saw its profit slide in 2024, after losing major client Stellantis and despite strong sales in its finished vehicle and warehousing divisions, its annual results have revealed.
Ceva Ground Logistics, which has its headquarters in Ashby De La Zouch in Leicestershire, specialises in finished vehicle logistics; overland contract logistics; warehousing; and industrial logistics.
The company was formerly known as Gefco UK, until it was purchased by Ceva Logistics’ parent company CMA CGM in July 2022. Gefco was the logistics arm of automaker Stellantis. Following its acquisition it was rebadged Ceva Ground Logistics. It employs around 400 staff.
Reporting its annual results for the year to 31 December 2024, the company revealed that whilst turnover increased marginally from £125.1m in 2023 to £125.2m in 2024, pre-tax profit dipped to £22.5m (2023: £23.8m). Cost of sales during the period fell to £48.6m (2023: £53.7)
The company’s finished vehicle division provided the lion’s share of turnover during the year, rising to £44.9m (2023: £40m). Warehousing revenue also increased to £30.4m (2023: £27.2m). However turnover in both the overland contract logistics division and the industrial logistics division declined, with the former dropping to £22m (2023: £28.5m),and the latter dipping to £28m (2023: £29.8m).
In its business review of the results, the company said: “Whilst overall revenue remained consistent with the prior year, there were variations across product lines.
“During 2024 the company continued to grow its reusable packaging activity. Ground and rail experienced a decline in volumes due to the loss of Stellantis, a key customer, directly impacting revenue. In addition, the demand from the two-wheeler market slowed down.
“On the other hand, finished vehicle logistics has seen an increase in revenue compared to 2023, supported by increased activity in vehicle storage and car-in-container transport services.”
The review added: “CEVA Ground Logistics UK remained focused on enhancing the profitability of its operations during 2024 and achieved profitability across all product lines.
“The gross margin increased by 4.0% to 61.1% compared to 2023. The profit on ordinary activities before taxation and before exceptional items increased from £17m to £22.5m.
“The main impact on profit before tax compared to the prior year is improved productivity across operations following increased monitoring and supervision, and better utilisation of resources. This resulted in a reduced need for temporary staff.”
The review said that whilst the loss of Stellantis “represented some short-term challenges to the operation, a well planned and executed plan to manage costs and resources was enacted to support the business”.
It added that the company had also won some “unplanned new business wins” during the period and that its customer diversification strategy had help land a new long-term lease for its port facilities at Sheerness.
Looking to the future CEVA Ground Logistics UK said it plans to “continue to develop a portfolio of third-party clients business in 2025 with an emphasis on medium sized customers of over £250,000 per annum, and to support the development of corporate key accounts, not only within the automotive industry but also focusing on its portfolio diversification as well as products development.
“The lean approach to cost will be maintained with a constant review on how to make costs more flexible such as using subcontractors.” the review added.
A request for comment from Ceva Ground Logistics has yet to receive a response.
