Clugston Distribution Services made a pre-tax loss last year, mainly due to it opening a new division in the south of England.
Latest accounts for the Scunthorpe-based haulier showed that turnover increased slightly to almost £22m in the year ending 29 March 2025.
However, 2024’s pre-tax profit of £102,000 turned into a £559,000 loss during the period.
“The direct costs of operating the business in a highly competitive market increased by 7% resulting in a gross margin reduction from 16.26% to 13.10%,” the company said in a report.
“A significant part of the loss was a result of establishing a new haulage division in the year in the south of England, which is now operating profitably.
“The management of the company continue to monitor the divisions that are performing and those which are struggling and taking the appropriate actions to reduce losses.
“The ongoing national and international economic challenges, which are out of control of the company, continue to have a negative impact on the business.”
Clugston entered into a company voluntary arrangement in February 2025 and it said this initially caused some disruption to the business but that with “strong support of employees, customers and stake holders” the haulier continued to operate with no significant impact.
“The commercial vehicle maintenance division continues to grow both its customer base and provision of services to specialist hauliers,” it added.
“Despite a difficult market place from which to attract technicians, it is managing to continue to provide a high level of service for 363 days per year.”
