Autologic says its acquisition of the assets of Sensible Transport will add £6m a year to its revenue, but warns that automotive customers remain “focused strongly on price”.
For the year ending 31 December 2011, Autologic saw its UK revenue rise 4% to £114.5m (2010: £110.6m) but operating profit in its UK arm fell from £3.2m a year ago to £3.1m.
It says that contract pricing in the automotive sector remains competitive, with customers focused strongly on price. The company adds: “Cost pressures in general remain with us and the price of diesel continues to rise. Our contractual fuel clauses tend to lag behind this curve across the portfolio of contracts.
“However, our emphasis on controlling significant cost lines and investment in key assets has allowed us to maintain service levels in a cost effective manner,” the year-end trading statement adds.
On 1 February Autologic acquired Sensible Transport out of administration. It says that in addition to retaining Sensible’s management team, the purchase increased Autoligic’s fleet of car transporters by 30 and improves its relationship with dealerships and rental firms. Furthermore, it reduces Autologic’s dependence on the new car market.
In January, Autologic signed a three year contract with Volkswagen Audi as well as a new contract with MG Motors for UK dealership distribution. A new contractr was also signed with GM to handle some UK distribution.
It also extended the scope of its contract with Ford to include distribution of the new Range Rover Evoque and renewed its contract with BMW for dealership delivery.
Autologic chief executive Avril Palmer-Baunack, says: “Undoubtedly there are opportunities to develop the existing business lines within Autologic over the course of 2012, both by incremental, organic growth and by acquisition.
“We are also well positioned to implement the board's strategy to move into related sectors and for Autologic to establish a greater presence across the vehicle life-cycle.”