Palletways “well positioned” to continue growth

In the 18 months to the end of last year, the pallet business also made a pre-tax profit of £32.4m.

Palletways said the change in trading period was a consequence of it aligning its year end with the wider DP World Group.

“EBITA for the period was £28.1m, which was 43% higher also due to the 18-month period,” Palletways said in its business review.

“The company controlled costs tightly in the face of inflationary pressures, including fuel and energy, which impacted margins from 8.6% to 8%.

“Management believe the company is well positioned to continue to grow and develop the membership further in the following year and maintain a high quality of service for its members and customers in a highly competitive market.”

It listed fuel costs and global supply chain disruptions as two of the principal risks facing the company.

“Fleet renewals have seen delays in fleet replacement availability, along with higher lease premiums, which can continue to adversely fluctuate between order and final vehicle delivery,” Palletways added.