Palletline said it had laid the groundwork for profitable growth after disposing of three loss making businesses last year.
The hub and spoke distribution network divested the previously acquired businesses, including Palletline Logistics Wrexham, in “a positive and deliberate step” enabling it to focus on core strengths.
The move led to a non-cash impairment of £2.6m, but it added that it was now in a stronger position. EBIT before the impairment was £2.2m for the year ending 31 December 2024, compared to £2.1m in 2023.
The group, which includes Mike Watson Transport, ABE Ledbury, S&S Distribution and Fast Forward Distribution, said it had performed in line with expectations and with consistent volumes.
Cash reserves increased to £1.4m, even after an increased dividend payout of £320,000 – up from £56,000 the previous year.
As part of its strategy it appointed a new CFO last October – Bali Bandha – to strengthen its brand and drive business growth.
It also recently partnered with cost, procurement and carbon solutions specialists Auditel and this year became the first pallet network to complete a carbon footprint report under the PAS 2060 protocol.
Group CEO Graham Leitch said: “Despite uncertainties in the economy we maintained our market share and successfully divested three loss making businesses.
“We have taken strategic steps that position us for sustainable, member-focused growth.
“Reinvesting in the business and our people is integral to our member-owned model.
“I am proud that we have also become the first in our sector to complete a carbon footprint report under the PAS 2060 protocols, demonstrating leadership in sustainability as well as performance.”
Bandha added: “By simplifying our structure and enhancing ESG credentials, we have laid the groundwork for responsible, profitable growth. We continue to exceed financial covenants and enter 2025 in a strong cash position, with momentum on our side.”
