Premier Logistics (UK) returns to profit after financial restructure

Latest figures show that Premier Logistics (UK) increased turnover by 2% to £10.2m as the haulier battled its way out of its Company Voluntary Arrangement (CVA).

For the year ending 31 October 2019, the company also returned to the black, with a pre-tax profit of £2.3m, compared with a loss of £2m in the 10 months to 31 October 2018.

It said profits were boosted by an exceptional item of £1.85m in respect of the write back following its early settlement of the CVA it entered into during July 2018.

The company was forced to restructure its finances via a CVA in the face of a £5.7m shortfall to creditors.

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A revision to the original terms would have meant it making monthly contributions over five years.

However, Premier Logistics said this term was later reduced as part of a settlement accepted by creditors and HMRC and the CVA ended last month, thanks to it concentrating on core services, stripping back its assets and focusing on a core group of customers.

In its review of the business, the company said: “To date, all the company’s CVA obligations have been met and as part of the terms of ending the CVA an additional sum of £500,000 was paid in January 2020 to enable the supervisors to distribute a final dividend to the creditors in full and final settlement of all outstanding liabilities.”

Earlier this month, Premier MD Lee Christopher said the company had been “at a huge disadvantage in the marketplace” while trading through the CVA and that many in the industry had written it off.