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The Anderson Group is mulling whether to close down two of its haulage operations – Sam Anderson (Newhouse) and T McMillan Transport – as it begins to make redundancies at both firms.

The group, which is based at Motherwell in Lanarkshire, said this week that the low profitability of both haulage companies, combined with the impact of the Covid-19 pandemic on the economy had triggered its decision to cut jobs.

Sam Anderson (Newhouse) specialises in container transportation – a sector which has been hit by both Brexit and more recently the Covid-19 pandemic.

In its latest annual results, to 31 December 2018, the company, which has an operating licence for 70 trucks and 170 trailers, made a pre-tax loss of £491,582.

T McMillan (Transport) is a general haulage company and operates 15 trucks and 40 trailers.

In its latest annual results to 31 December 2018 it suffered a pre-tax loss of £171,339.

In a statement the Anderson Group said it had “entered into redundancy consultation with the haulage operations of Sam Anderson (Newhouse) Limited and T McMillan (Transport) Limited.

“These two operations combined represent a small proportion of the group’s annual turnover at circa 3% and operate within a low margin sector and as such have struggled with profitability over recent years.

“The latest economic situation adds further pressure, and the group has taken the decision to withdraw ongoing support for these two operations, to focus efforts on the core business.

“The consultation process is ongoing, with the wider businesses unaffected; the wider group remains well placed to take advantage of future opportunities.”

Asked what the future holds for the two firms, Sam Anderson transport manager Greg Pollock told MT that neither company was going into administration, adding: “To make things perfectly clear, Sam Anderson (Newhouse) Ltd and T McMillan (Transport) Ltd have entered into redundancy consultation.

“If, at the end of this period the only conclusion is to close the business that is what we will do.

“As I have said previously, no company will be going into administration/liquidation.”

Pollock did not say how many jobs are at stake at the two firms.

The Anderson group specialises in transport, logistics, truck and van sales and property.

Other companies in the group include haulage firms F Short and Son and B Mullen and Son, as well as Northside Truck and Van, and property division Anderson Commercial (Newhouse).