Pre-tax profit at Welch’s Transport soared by 67% in 2025 after the company won a number of large distribution contracts, which helped offset a “generally flat and highly competitive” market, the group has revealed.
In its latest annual results for the year to 31 December 2025 the Cambridge-based family-led firm revealed that operating profit leapt almost 70% to £297,221, up from £175,405 in 2024, whilst pre-tax profit rose by over two thirds from £191,949 to £319,887.
Transport-related turnover increased by 11.8% to £14.47m, compared with £12.94m a year earlier. Motor trade turnover also grew, rising from £1.92m to £2.33m, while crane hire turnover increased from £152,755 to £167,866.
In its strategic report on the results, Welch’s said the growth in transport revenue was driven by several large distribution contract wins.
It added that the restructuring of its sales and business development departments, first highlighted in last year’s report, was continuing to deliver results, with further contracts already secured for 2026.
However, the company warned that the impact of these contracts on the bottom line would take time..
The report said: “Large contract wins tend to have heavy onboarding costs and take a period to settle down before profits start to flow,” adding that this should be reflected in its 2026 results.
The company said customer service levels remained strong, with delivery performance and other operational KPIs monitored daily.
It also continued to benefit from its investment in traffic, dealer and warehouse management systems.
Welch’s continued its transition towards zero-emission transport during the year, deploying its third electric vehicle, the report noted.
A further three EVs have been ordered for delivery in the second and third quarters of 2026.
The company is also investing heavily in charging infrastructure, with six-bay hyperchargers supported by dedicated 1MW supplies planned for its Bedford and Duxford depots by the end of the third quarter of 2026.
Welch’s said the infrastructure would “future proof” the two depots as the business continues its energy transition over the coming years.
Capital expenditure on conventional vehicles and trailers remained consistent with the group’s replacement policies, the report said.
The company also continued its vehicle and site refurbishment programme during the year.
The report also noted that truck and trailer prices were falling back from the elevated levels seen previously, while lead times had reached their lowest level since the pandemic and stock vehicles were readily available.
However the ongoing technician shortage limited its motor trade growth, the report said.
Whilst the group’s motor trade operation grew during 2025, helped by an expanding customer base, growth was constrained by the current lack of technicians — an issue Welch’s said was common across the sector.
Elsewhere in the group, 75%-owned JPS Installs, which specilised in road freight transport and construction and installation support activities, had another difficult year, leading the directors to take the decision to close the business early in 2026.
Meanwhile, 50%-owned e-commerce and fulfilment business TBM Fulfilment Solutions UK moved into larger premises during the year.
Welch’s said the move left the business well-positioned for “significant growth”.
Looking ahead, the directors said they remained “guardedly confident” about the coming year, in the light of wider global economic and political environment.
