Howard Tenens, which specialises in warehousing and distribution, property development and property management, saw a slight fall in revenues in 2024, with pre-tax profit almost doubling, boosted by a major group restructuring, which saw the transfer of Howard Tenens Logistics’ business and assets to the parent company.
According to its latest annual results to 28 September 2024, group revenue fell to £128.8m, down from £129.4m in 2023.
Revenue from the group’s warehousing and distribution division, Howard Tenens Logistics, rose to £111.7m, up from £110.9m in 2023. However, turnover from the property management arm fell to £17m (2023 - £18.4m).
Group pre-tax profit rose to £24.3m (2023: (£13.2m), boosted by the inclusion of £15.2m of property assets in the financial results.
In its business review to the results, the group said: “The financial period to 28 September 2024 has been characterised by a focus on stabilisation and strategic investment to support long-term growth.
“Howard Tenens has taken deliberate steps to streamline its operations and strengthen its organisational structure.
“At the close of the period, the group underwent a significant structural simplification, with the parent company hiving up its logistics-focused subsidiary.
“As a result, the majority of trading activities are now consolidated within Howard Tenens Limited.
“This realignment has fostered a unified ‘single entity’ perspective across the organisation, positively influencing both culture and internal collaboration.
In addition, Howard Tenens Limited acquired full ownership of Howard Tenens Power (HTP) and its subsidiary through a share-for-share exchange, which the group said was aimed at further consolidating the group and to support its broader sustainability and energy strategy.
The group also took over ownership of Tenens Sharpness LLP, Howard Tenens Logistics’ warehouse and logistics facility in Sharpness, Gloucestershire, consolidating the facility into the group’s financial statements.
The business review added: “Group turnover experienced a modest decline compared to the prior year-marking the first such decrease since 2012.
“This reflects the increasingly competitive landscape within the logistics sector.
“Despite this, the group remains financially and operationally resilient, underpinned by a robust balance sheet and a clear commitment to long-term investment.”
During the period, in October 2023, the group bought “a strategically located” site in Bridgwater for approximately £8m, the review revealed.
“The 100,000sq ft site with dock-level loading doors and a large yard area, enhances the group’s operational capacity in the South West, the review said, adding the site has undergone a major refurbishment since purchase.
It added: “Subsequent to the reporting period, in January 2025, the group further expanded its property portfolio with the acquisition of a site in Weston-super-Mare for just over £9m.
“This site comprises over 300,000 square feet of warehousing, also featuring dock-level loading doors and a large yard area. This represents the largest single unit warehouse in our portfolio.”
Turning to its property division, the review said £5m had been spent on repairs and maintenance during the reporting period-double the prior year’s spend.
Noting the increase in the fair value of its property assets to £15.2m, the review warned: “While this uplift reflects current market assessments, the directors remain cautious in their interpretation of fair value movements.
“Based on market experience and recent transactional evidence, the directors believe that commercial property values are trending downward. Accordingly, there is a risk that the fair values reported in these financial statements could fall after the period end.
“This view is supported by the recent acquisition of the Weston-super-Mare facility in January 2025. The purchase price represented approximately one-third of the estimated cost to construct a comparable facility and was achieved at half the cost per square foot of the Bridgwater acquisition, completed just 15 months earlier.”
Other developments during the financial year include an investment of almost £13m in renewing of the logistics division’s fleet, including the acquisition of new tractor units and trailers.
Turning to future developments, the business review states: “The year ahead presents a complex landscape shaped by significant political and economic developments.
“Domestically, the recent budget introduced by the new Labour government has brought about notable changes to employment-related costs, which are expected to impact businesses across sectors. These adjustments will require careful navigation and strategic planning.
“On the international front, the commencement of President Donald Trump’s second term in office has already introduced heightened geopolitical and economic uncertainty.
“Global markets are responding to renewed concerns around trade policy, particularly tariffs, which are beginning to affect some of our clients directly.
“We continue to monitor these developments closely and will continue to support our clients through this evolving global environment.
It concluded: “Howard Tenens remains committed to building on its core strengths and leveraging recent investments to drive sustained success.
“Looking ahead, the group will continue to focus on operational excellence, customer service, and long-term value creation.
Central to this strategy is the continued promotion of the values that define our organisational identity.
“In the year ahead, we will actively celebrate and embed the principles that guide our culture-Supportive, Progressive, Resilient, and Connected-ensuring they are reflected in the way we work, lead, and grow together.”
