Abbey Logistics Group saw pre-tax profit tumble by 70% in 2025 but boosted its gross margins and net assets following a strategic decision to focus on higher margin work.
The company, which has its headquarters in Golborne, Greater Manchester, is a subsidiary of Belgian food logistics giant Sitra group. It employs around 500 and operates a fleet of around 350 tractor units and 700 liquid and powder tankers.
According to its latest financial results for the year to 31 December 2025, the bulk liquid and powder specialist posted a turnover of £69.5m, down 6% from £73.9m in 2024, while pre-tax profit dropped by 70%, from £4.4m to £1.3m, in the same period.
Operating profit fell from £5.8m to £2.6m during the year due to a rise in administrative expenses to £15.8m (2024: £13.7m).
In its strategic report to the results the directors said the fall in turnover reflected “a combination of lower transport volumes and changes in customer activity during the year with additional focus on improving margins as well as turnover”.
The report added: “Despite the reduction in overall profitability, the company maintained positive earnings and an increase in gross margin whilst continuing to invest in its fleet and operational capabilities building for the future.”
Gross profit came in at £18.6m (2024: £19.6m), with gross margin rising slightly to 26.8%, up from 26.5% the prior year.
During the year Abbey continued to invest in its fleet, spending £4.9m largely on updating its fleet of tractor units and specialised tanks.
Total fixed assets grew slightly to £21m, while net assets strengthened to £8.1m, up from £6.9m in 2024.
The fleet expansion was supported by hire purchase and finance lease arrangements, resulting in £13.2m in outstanding finance lease liabilities at year-end, and generating £1.3m in annual finance costs.
Looking ahead, the board stated it remains confident in the company’s financial resilience, confirming that the business maintains “adequate liquidity through its existing banking and financing arrangements”.
