Pallet-Track has witnessed a more “cautious” start to 2022 after delivering bumper revenues and rising profit in 2021, the network revealed this week.

Announcing its latest annual results, for the 12 months to 31 January 2022, the pallet network, which employs over 160 staff, reported a leap in total turnover to £133.9m (2020: £111.3m).

Network delivery revenue provided the lion’s share, up 19% on the previous year to £110.4m, whilst hub revenue surged by 27% to £23.5m.

Meanwhile pre-tax profit rose to £7m from £5.5m in the previous year.

Pallet-Track said the boost to revenue in 2021 was driven by strong consumer demand for home renovation products during the Covid-19 pandemic lock downs and the impact of the reopening of hospitality venues after they were closed under Covid-19 restrictions.

Caroline Green, Pallet-Track chief executive, welcomed the results but warned that whilst the network and its members had successfully navigated the challenges of the Covid-19 pandemic they were now bracing for the impact of the Ukraine War and economic slowdown in the UK.

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Green said: “As we continued to move forward in a post-lockdown world during 2021, we saw volumes increase as covid restrictions eased. In 2021, network delivery revenue rose by 19%, much of which can be attributed to the increasing demand for home renovation products and hospitality venues reopening. We opened our Wednesbury-based Midlands hub in May 2021 to support the increased volumes we were experiencing across the network.

She added: “As the challenges of covid lockdowns subsided, the sector began to experience new challenges from the uncertainty in eastern Europe and the current economic climate. While we continue to experience demand which is broadly in line with usual market trends, the current situation has had implications for volume growth and the sector has seen a more cautious start to 2022.

“Looking ahead to the remainder of 2022, we will continue to invest in our information technology, recruitment and training to maintain our excellent standards of service, for our members and their customers.”