Meachers Global Logistics saw turnover rise by over 5% and pre-tax profit fall marginally, according to its latest annual results, and warned that it was “cautious” for the future, as it faces a welter of sectoral challenges including rising wages and business rates, costly environmental regulations, and the rocketing price of kit, which the company has seen leap by 43% in five years.
Reporting its latest annual results for the year to 31 May 2025, the company announced a 5.4% rise in turnover, up from £40.2m in 2024 to £42.4m in 2025. However there was a slight fall in pre-tax profit to £3.37m (2023: £3.46m).
Meachers Global Logistics, which has its headquarters in Sothampton, specialises in freight and transport logistics services. Founded in 1958, it offers supply chain management, freight forwarding, UK warehousing, and distribution for both domestic and international clients.
In its strategic report to the results the company said it was “pleased” with its performance during the period.
It added: “The directors continued their policy of reinvesting in the business with the company’s total net worth rising by 9.9% from £14.67m to £16.12m.
“Funding for new equipment was considerable with a further £1m invested in the year. This was primarily on new vehicles to ensure the fleet continues to meet the highest safety and environmental standards possible.”
Turning to future developments the report said: “The directors are confident about the future and continually look at opportunities for growth both organically and through acquisition if suitable opportunițies arise.”
However the report added: “With the current eçonomic climate and growth and productivity projections the directors remain cautious. The expectation is that these factors may lead to challenges for the company that could impact future profitability.”
The report then listed the challenges the company faces. It said: “Future concerns particularly centre around increasing costs in most areas of the business. We continue to be affected by the rising cost of purchasing equipment.
“New vehicles brought in on a five-year replacement policy were up to 43% more expensive than the outgoing vehicles.
“Premises costs remain high. With the majority of the company’s leases up for renewal within the next 12 months, we are expecting to see a significant increase in rent.
“This is coupled with the expectation of a further rise in business rates with the next revaluation due to come into effect on 1 April 2026 based on rateable values from 1 April 2024.
“Changes to employment legislation, that have significantly increased the corporate tax burden, look set to continue.
“Environmental costs are predicted to increase, particularly in relation to the drive towards net zero.
“Wage pressure for Heavy Goods Vehicle (HGV) drivers is still being experienced in the transport industry and we are beginning to see issues surrounding the supply of HGV labour again.
“This looks set to continue with the fundamental issues remaining unresolved,” the company warned.
