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Reed Boardall hit by rising fuel costs

  • 16 November 2011
  • By Laura Hailstone

Reed Boardall Transport says the cost of fuel continued to put margins under pressure during its financial year ending 31 March 2011.

Posting a 22% drop in pre-tax profit to £598,638 from £768,967 in 2010, the firm says operating costs also increased during the year. Turnover was up 8% to £37.7m (2010: £30.2m).

“Significant effort is being put into reducing relocation journeys where no load is carried and no revenue is earned by, for example, targeting business that will integrate well with existing routes,” states the directors’ report for the transport business.

Reed Boardall Cold Storage also saw a dip in profit to £5.2m from £5.7m last year. Turnover was up slightly at £36.9m from £35.3m in 2010.

The directors’ report for the cold storage side of the business states that although volumes rose slightly, “the uneven nature of the demand and generally higher costs made for difficult trading”.

“The uncertain outlook of many companies in the food industry made it very difficult to obtain price increases. However, the high level of customer satisfaction was maintained and was instrumental in several major companies renewing their service agreement,” adds the report.

Reed Boardall Group, which includes turnover from Reed Boardall’s vehicle servicing and parts business, recorded £53m turnover (2010: £50.9m) for the year, with pre-tax profit down 10% to £5.3m (2010: £6m).

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Article source: http://www.roadtransport.com/Articles/2011/11/16/139746/reed-boardall-hit-by-rising-fuel-costs.htm