A fall in demand for warehousing space led a 24% reduction in turnover for Rhenus Logistics last year, with its profits plunging into the red.

The company said 2023 was marked by a fall in underlying demand for UK warehousing, storage and transport services and was well below the peak of demand experienced in 2022.

Revenues fell to £11.1m in the year ending 31 December 2023 from £14.6m the previous year.

It also made a pre-tax loss of £117,000 compared to a pre-tax profit of £570,000 in 2022.

“The availability of warehouse space in the primary area where the company operates has also increased, driving high levels of competition for customers, both new and existing,” Rhenus said in its strategic report.

“The gross margin contribution has reduced by 20% reflecting the competitive nature of the market and the completion of some longer term contracts with customers.”

The company added it had reduced administrative expenses by 12% year on year but that this cost management associated with lower revenue had been offset by inflationary pressures during the period, especially in building rent reviews, business rates and utilities.

It added: “The company retains a strong balance sheet and the directors are satisfied that the business is well positioned to carry out its medium to long term strategic and business objectives despite a challenging 2023.”