Great Bear Distribution saw pre-tax profit plummet last year by almost a third as “challenging market conditions”, including rising inflation and a warehouse worker and driver shortage took their toll, according to the company’s latest annual results.
The Chester-based 3PL, which is part of the Culina Group, provides contract logistics and supply chain management services and operates over 7 million sq ft of warehousing space across more than 30 UK locations, as well as a fleet of over 400 vehicles. It employs over 400 staff.
In its recently published financial results for the year to 31 December 2023, Great Bear has revealed turnover rising to £525.2m (2022: £398.8m), largely boosted by an additional £118.4m in revenue from the transfer of Eddie Stobart’s warehousing operations to Great Bear in January 2023.
However pre-tax profit plunged by 31% to £29.9m (2022: £42m) during the year, which the company’s strategic report to the results attributes to ongoing challenging market conditions, including rising inflation in the period and difficulty in recruiting drivers and warehouse staff.
Rising cost of sales also took their toll, up from £302m in the previous year to £391m in 2023. Administrative expenses also ate into the company’s gross profit, leaping to £98.9m (2022: £65m) with finance costs adding another burden in the year, coming in at £26.8m, up from £6.8m in the previous year.
Despite the fall in profit the strategic report stated that directors are “satisfied that the company continues to provide its customers with a market leading service.
“The company is well funded and financially robust, so the directors are confident the company is well placed to meet the challenges of the ongoing economic climate and market conditions,” it said.
A request for comment on the company’s latest financial results has yet to receive a response from Great Bear.
