Kammac saw its pre-tax profit plunge by more than half in the months ahead of its sale to Elanders Group and also saw a drop in sales in the early part of this year, according to its recently published annual results for 2023.

Skelmersdale-based Kammac specialises in warehousing, distribution and logistics. It has operating licences for 220 trucks and 295 trailers and has14 depots across the UK.

In November 2023 the company was sold to Swedish giant Elanders, a global supply chain logistics and print and packaging solutions company, which has over 115 locations across Europe, the Americas and Asia.

In its latest financial results for the year to 31 December 2023, Kammac revealed a fall in both profit and turnover in the months before its sale to Elanders, with turnover down by £5.6m to £79.8m (2022: £84.2m) and pre-tax profit plummeting 54% to £9m, down from £19.6m in the previous year.

Its strategic report to the annual results revealed that despite a “strong start” to the year, the company saw a 5% decrease in turnover during the period against both warehousing, transport and value added services, which it attributed to the “current economic environment”.

During the year the company closed one of its units, replacing it with a smaller “modern, well positioned site” close to the Midlands, which the report said “fits in with Kammac’s agile model and enables us to continue to grow the business.”

Employee numbers also fell in the period by 67, of which five were members of the pre-sale ownership.

Turning to post-balance sheet events, the report noted: “There has been a drop in sales during the start of the trading year for 2024. Although several contracts have been secured, there is an overall reduction of product volumes across the board for warehousing, value added services and transport.”

However, the report also stated: “The profits in 2023 are reflective of a full year’s trading with much of the current contracts anticipated to grow into 2024 and with the company’s continued efforts to secure new customers, it is anticipated that sales growth and profitability will continue to grow in 2024.

It added that the business closed the year “with a strong balance sheet and a healthy cash flow position”.

A request for comment from Kammac has yet to receive a response.

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