United Pallet Network (UPN) is “optimistic for the future”, despite seeing pre-tax profit almost halve during the year to 31 March 2024, as the spike in volumes driven by the Covid-19 pandemic lockdowns declined.

Turnover for the year came in at £13.5m (2022: £14.1m), down 4.4%, while pre-tax profit spiralled to £2.8m, compared to £5m in the prior year.

However, the company’s strategic review of the results said the network’s directors believe UPN’s position is “satisfactory”, pointing to its shareholders’ funds which amount to £3,978,822, including distributable reserves of £3,975,622.

The review added that the directors are “optimistic for the future, especially as the company’s current assets exceed its current liabilities by £3,566,262”.

It also noted that the directors are ”confident of continued growth and long-term stability of the business, with pallet numbers and membership increasing”.

In terms of future performance, the review said the company is confident it will continue to grow, pointing to the number of members joining and the number of pallets moved on a nightly basis as evidence.

The review added that UPN also plans to develop its internal systems and IT infrastructure in the coming year which it said “will maintain UPN’s position as a market leader within the pallet sector”.

Commenting on the results, a UPN spokesman said: “Investment on both personnel and infrastructure were made in response to the increase in volume over Covid.

“These investments have been maintained to enable smooth growth and future proof the business.”

 

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