Premier Logistics has overcome the impact of a major bad debt to deliver a 4% increase in turnover in 2024 and further investment in its fleet and infrastructure, according to its latest annual results.
The Coalville-based national pallet distribution and contract logistics firm operates a fleet of around 90 trucks and has 200,000sq ft of warehousing. The family run firm, which was founded in 2004, is a Palletforce member and employs around 60 staff.
In its latest financial results for the year to 31 October 2024 the business revealed a rise in turnover to £12.2m (2023: £11.7m), although pre-tax profit fell to £351,661, down 2.9% compared to the 2023 result of £467,272.
In its strategic report to the results the company said the business had “demonstrated resilient growth” in 2024, adding that its recovery “follows last year’s challenges when we experienced a significant bad debt”.
The bad debt, which Premier Logistics reported in its 2023 accounts, amounted to £559,880 which, together with the lost work from the account saw revenue fall by 11.4% to £11,740,644 in 2023 (2022: £13,246,813).
Turning to the fall in pre-tax profit, the report said: “Whilst this represents a decrease in profit percentage, it reflects ongoing investment in our fleet and infrastructure to support future growth”, adding that the company’s balance sheet “continues to strengthen with net assets at the year end increasing to £3.1m (2023: £3m).”
During the year the company invested in new fixed assets at a cost of £1.1m, up from £1m in the previous year - a strategy which the report said had cut maintenance costs and improved driver retention.
It also invested in route planning and load optimisation technology during the year to help further reduce fuel consumption and its carbon emissions.
Key challenges faced by the company include the ongoing HGV driver shortage and rising fuel costs - which the report said had risen to £1,319,578 in 2024, compared to £1,293,417 in 2023.
Turning to present times the report said: “We continue seeking opportunities for growth and development, with a particular focus on expanding our warehousing operations which showed strong potential this year.
“We will focus on deepening relationships with existing customers whilst targeting new sectors where our reputation for quality service and reliability can create competitive advantage.”
The report concluded: “Premier Logistics is well-positioned for success in the years ahead. We have a strong foundation, a proven track record of resilience, and a clear vision for the future.
“By remaining focused on our customers, continuing to invest in our fleet and technology, and developing our service offerings, we will continue to grow and adapt in this challenging and dynamic industry.”
