National logistics and warehousing provider Menzies Distribution Solutions (MDS) delivered a pre-tax profit of over £7m in 2024, despite battling with the impact of high inflation rates and a weak economy, according to the company’s latest annual results.
In figures for the year to 28 December 2024, the company revealed that, despite turnover falling by £9.7m to £226.6m (2023: £236.3m), its pre-tax profit rose to £7.4m (2023: £4.4m) during the year.
In its business review to the results, MDS said the business had been hit in 2024 by “economic headwinds” which had impacted its core transport volumes and warehouse occupancy levels.
It added that new business wins had helped offset these challenges, as well as integration savings, following the acquisition of Scottish logistics firm JBT in June 2021, along with “significant commercial negotiations”, and a firm focus on costs.
The review continued: “The impact of the difficulties experienced across the UK economy, most notably high inflation rates resulted in increased administrative costs year on year.
“The largest increases were experienced in rates and utilities costs across our property network.
“Maintaining profit in very difficult market conditions has been a great success delivered by the company.”
Looking to the future, the review said: “Warehouse occupancy from current customers is expected to grow from 2024 levels, and significant growth in the consumer transport sector is anticipated.”
The review also highlighted the company’s name change from Menzies Distribution Services to Menzies Distribution Solutions in August 2024.
This happened ahead of InPost’s acquisition of the remaining 70% of Menzies Distribution for £60.4m in October 2024, which gave the Polish parcel locker giant total control over Menzies’ express and newstrade operations.
Menzies Distribution Solutions was not the part of the transaction. However InPost has retained a 30% stake in the company, with the existing management team continuing to run the business.
The review noted: “At the point of the demerger in October 2024 the newly formed group entered into a £10m overdraft facility with The Royal Bank of Scotland on a twelve-month term. Subsequently in March 2025 the business refinanced to a £24m asset based lending agreement remaining with Royal Bank of Scotland, on a three year committed term.”
Menzies Distribution Solutions indicated that the company, along with the rest of the sector, is continuing to battle against adverse economic conditions this year.
A spokeman for the company said: “Consistent with the whole sector, in 2025 the company faces considerable economic headwinds.
“The board and senior leadership team, while focusing on maintaining an exceptional health and safety performance, continue to implement actions and plans to best mitigate the adverse impacts, in an extremely difficult trading environment.”
