Pallet-Track’s revenue jumped by almost 10% in 2025, while pre-tax profit rose 15% and adjusted EBITDA leapt 34%, driven by growing pallet volumes and increasing network delivery activity.
In its latest annual results the pallet network operator has reported pre-tax profit of £6m for the year ended 31 December 2025, up from £5.2m in 2024, while gross profit margin improved by 0.5 percentage points to 12.6%.
Hub and transport revenue increased by 14.8% to £33m, from £28.7m in the previous year. The company attributed the growth to higher pallet volumes and hub fees.
Network delivery revenue rose by 8.7% to £129.3m, compared with £119m in 2024, accounting for the majority of the company’s £162.3m total turnover.
Adjusted EBITDA, which excludes interest, tax, depreciation, amortisation and exceptional costs, increased to £9.46m from £7.06m.
Operating profit rose to £6m from £5.2m, despite the company recording £3.4m in exceptional costs, primarily relating to the transition to its new central hub and headquarters. Exceptional costs in 2024 totalled £629,231.
In its strategic report on the results, Pallet-Track said underlying operating profit had increased materially after excluding these exceptional items.
The company, which provides a logistics hub and delivery network for pallet and freight movements, said it continued to perform well and that key financial measures had strengthened year on year. Its board said it was confident the improvement in performance would continue into 2026.
The report added that a key focus is investment in technology, with Pallet-Track continuing to develop an in-house network management system (NMS) scheduled for rollout in 2026. The company said the system would enhance the services provided to its shareholder members.
Further infrastructure investment is planned at its Waterway Hub in Wolverhampton, with spending focused on operational efficiency, health and safety.
Pallet-Track’s shareholder members are also its customers, and many account for a considerable proportion of its suppliers. The company said regular engagement with members was central to maintaining service standards and national coverage across the network.
The business had 200 employees at the end of 2025, compared with 189 a year earlier.
Pallet-Track also highlighted the potential impact of rising labour costs, including increases in the National Living Wage and employer National Insurance contributions, alongside volatility in global fuel prices.
The report noted: “The Group’s performance is primarily influenced by the state of the UK economy and in the last year volumes have continued to grow.
“However, continued economic uncertainty, alongside increasing pressure on costs, could have an impact on the Group and its shareholder members.
“In particular, the sustained increase in labour costs following National Living Wage and National Insurance contribution increases coupled with ongoing volatility in global fuel prices, remain the most significant cost pressures facing the Group and its shareholder membership.”
The board said it continued to monitor the financial health of its members, given their importance to the network’s performance. A contingency fund is held in trust to provide support if a shareholder member experiences financial failure.
The company is now wholly owned by Northstarr Group Limited, following a group reorganisation in the previous year to buy out minority shareholders.
Pallet-Track said its strategy remained focused on growth through technology, infrastructure investment and maintaining service quality for its members.
The planned NMS rollout is a central part of that approach as the company seeks to build on its improved financial results.
