Falls in the value of sterling in the wake of the EU referendum have continued to hit Laser Transport International, which saw its pre-tax profit plunge by 64% last year.
In its latest results for the year to 31 December 2017, the Hythe-based company reported that whilst turnover had risen by almost 3% to £17.3m (2016: £16.8m), pre-tax profit plummeted to £16.6m (2016: £45.7m) in the period.
In its analysis of the results, the Palletline member said that despite “robust” new business deals early in the year, the firm’s pre-tax profit was hit by the impact of additional pension levy costs of £112,566, an unusually long summer recess in Europe, poor trading in December and continuing falls in the value of sterling.
The company estimated that, had it been able to purchase euros at the same average exchange rate as in 2016, its operating profit would have been £260,864 in 2017; more than three times greater than the £77,052 of operating profit which the company actually achieved in the period.
This year also got off to a rocky start for Laser Transport, the company said, thanks to adverse weather conditions in February which hit cargo volumes and a fall in its UK pallet distribution business in the first two months of the year.
Nonetheless “important new business gains” this year, combined with increased business from its existing contracts in import and export groupage services, has prompted the company to predict a strong performance “in the half year and beyond” in its review of the results.
Laser Transport International was unavailable for comment
