JW Suckling Transport has defied rising inflation and cost pressures to boost revenue and pre-tax profit in 2024, aided by increased investment in its aviation fuels delivery business and “strong” trading with long-term and new customers, its latest annual results reveal.
The petroleum tanker specialist’s results for the year to 31 December 2024 showed a rise in revenues to £34.7m (2023: £32.8m), while pre-tax profit increased to £3.4m (2023: £2.8m).
In its strategic report to the results, the company, which operates a fleet of around 120 tankers, said that, although growth was at a lower rate than in 2023, the year-on-year increases were in line with budgeted and forecasted expectations.
It added: “Business levels with key long-term customers remained strong, and we continued to further develop new customer relationships formed in the past few years.
“Continuing to adapt and enhance our IT systems and technological solutions remains a key area of focus to ensure we continued to evolve and meet the needs of our customers.
“Further investment into the aviation fuels sector enhanced overall trading figures. Additional operating centres were added during the year to strengthen our geographical offering and capabilities.
“Driver levels remained consistent, with both recruitment and retention of the driver workforce proving to be less challenging than recent years. Driver cost increases continued to be above inflationary levels.
“Staff numbers remained consistent year on year with continued investment in training where required.”
The report said the company had added to its truck and trailer fleet during the year and noted that asset lead times had continued to improve against previous years during the period.
It added: “All fleet investments during the 2024 financial period were funded by the cash generated by the business limiting the need for external financial funding exposure, and demonstrating the commitment of the company to continue investing in the business.”
Commenting on the fuels market, the report said the sector continues to be “challenging, particularly in relation to changing supply points”, but added that the company had remained responsive to changes in the market and to changes to customer requirements at short notice.
Listing the principal risks and uncertainties faced by the company, the report highlighted the conflicts in the Middle East and Ukraine, inflation, and rising interest rates.
It added: “The inflationary pressures continue to have an impact on key cost areas, particularly wages and salary costs, and the company strives to maintain the balance between remaining competitive and meeting the needs of its employees.”
Last year strike action by JW Suckling Transport tanker drivers was averted after a “significantly improved” pay deal, according to the union Unite at the time.
The agreement for the drivers in London, Essex, Middlesex and Grangemouth included a 6.3% increase in pay and “a huge improvement” to the company’s pension contributions, the union said, adding that the drivers had also received an increase in annual leave, harmonisation of terms and conditions and an unconditional annual bonus.
Other challenges listed by the strategic report included “pressure on margins and the need for cost efficiencies, increased flexibility, continuous improvements and a high standard of safety, and service performance.
“Strong performance and commitment to the environment and sustainability are key expectations of our customer base. The increased focus on the ‘oil sector’ by campaign groups presents some operational risks which the company mitigates by increased safety awareness and additional security measures.
“We continue to monitor the demand patterns for road fuels through the energy transition and are confident of sufficient levels of volumes in the medium term.”
In conclusion, the report added that continued support from its parent company SBG Group, and the wider group leaves the company “well positioned to face the challenges of the contract driven sector in which we operate”.
Turning to this year, the report said: “The 2025 trading outlook appears to be positive but increasingly competitive, and we recognise the importance of being flexible, adaptable and innovative to continue to meet the needs and expectations of our customers and the market.”
