Pre-tax profit fell by a third last year at MT Top 100 company Fred Sherwood & Sons (Transport), despite a 2% increase in turnover.

Its annual accounts for the year ended 31 March 2014 revealed a 35.4% drop in pre-tax profit to £944,007 (2013: £1.4m). Turnover increased to £37.9m, up 2% on the previous year’s £37.2m figure.

Its pre-tax profit margin slipped to 2.4% from 3.9% in 2013.

According to the directors’ report published at Companies House, the Shepshed, Leicestershire-based company spent £3.4m on new vehicles and trailers during the year, and £7.7m on fleet renewal and expansion over a two year period.

The report said the directors felt the company “traded successfully in the year”, despite what was described as “another turbulent year and a tough economic environment”.

It added that its business model was “continuing to work well” and contributed to growth in its turnover. Sales also increased by £751,672 over the trading period.

Fred Sherwood & Sons (Transport) incorporates Fred Sherwood (Shepshed), recycling transport firm Bulk Transport (Midlands), grain haulier George Varney (Bulk Services), aggregates firm Bulk Minerals and dry cargo transport firms Kwik Freight and KJ Transport.

It also includes storage division Sherwood Self Store, workshop Sherwood Commercial Vehicle Repair Centre, J23 Truck Stop and vehicle livery and sign writing division Elliott Signs.

The company declined to comment on the results.

The above results do not include the performance of Sherwood Property Developments, the company's property business.