Pall-Ex reports operating loss of £1.8m

Pall-Ex increased revenues by 3% in the year ending 31 July 2019, but it fell into the red as driver wages, pensions and fuel costs all hit its profits.

Latest financial results showed that turnover at Pall-Ex Group was £82.2m during the period, up £2.5m on the previous year.

However, it reported an operating loss of £1.8m compared with 2018’s £0.3m profit.

It also made a pre-tax loss of £1.8m.

The group said an increase in administrative expenses was the cause of the loss.

In a review of the business, it said: “The main driver behind this decreased performance was Pall-Ex (UK), the pallet management and haulage business, where increased driver wages and pensions and fuel costs adversely affected profits, posting a profit for the year of £0.7m, down from £2.5m last year.

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“The three ‘owned operations’ – trading haulage subsidiaries of Pall-Ex (UK) – failed to perform to budget and their losses continue to constrain the group’s overall performance; however, over the last 12 months, these losses amount to £1.6m compared with last year’s £1.7m.”

It added: “All three have turnaround plans and are working hard towards achieving a nearer break-even performance next year.”

The group acknowledged that although Covid-19 had impacted staff’s working practices and resulted in them being furloughed briefly, benefits had been seen in “buoyant pallet volumes, as a direct result of an upturn in B2C activity”.

Pall-Ex recently announced it had opened a new hub on its newly acquired Fortec site near Daventry, in order to accommodate an increase in freight volumes.

The post Pall-Ex reports operating loss of £1.8m appeared first on Motor Transport.

Pall-Ex increased revenues by 3% in the year ending 31 July 2019, but it fell into the red as driver wages, pensions and fuel costs all hit its profits. Latest financial results showed that turnover at Pall-Ex Group was £82.2m during the period, up £2.5m on the previous year. However, it reported an operating loss of £1.8m compared with 2018’s £0.3m profit. It also made a pre-tax loss of £1.8m. The group said an increase in administrative expenses was the […]
The post Pall-Ex reports operating loss of £1.8m appeared first on Motor Transport.Read More

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