Palletline saw revenues grow by 2.4% last year, although profits slipped in its logistics businesses due to a shortage of drivers.
For the year ending 30 June 2019, the network, which is wholly owned by its members, reported a £149.1m turnover, an increase from 2018’s £145.6m.
Turnover in its network operations increased by 2% and in its logistics subsidiaries by 4%, including a part-year contribution from Fast Forward Distribution, a long-standing member that it acquired in December 2018.
However, pre-tax profit fell by 13.8% to £375,000, which the network attributed to a year-on-year reduction in profitability in its logistics businesses.
In its business review, Palletline said: “This was primarily from S&S Distribution, which experienced a significant shortage of drivers from July 2018 and had to incur both agency and driver and subcontractor costs to offset this.
“This position was rectified during the year and the business now has a full complement of drivers.”
The company told motortransport.co.uk that its profit was consistent with “an exceptional first year contribution from its Coventry site, although experiencing a phase of driver shortages in the logistics businesses, which has now been resolved".
It said that in the current financial year, pallet volumes had declined marginally in line with the market, but profitability had significantly improved.
Graham Leitch, Palletline MD, added, “Palletline has always retained strong principles with its members and is a well-positioned business with high network service levels, backed by an exceptionally strong team to achieve these great results.”
