Logistics group returns to profit after going ‘back to basics’
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Specialist road tanker company Abbey Logistics is back in the black as it returned to profitability.
Reporting its latest annual results to 3 July 2021, the company has seen a 2% rise in turnover to £64.4m, up from £62.9m in the previous year, and an 87% increase in Underlying EBITDA to £8.6m, climbing from the previous year’s £4.6m.
Pre-tax profit was £2.76m, representing a £4m improvement on the loss of £1.26m reported in FY20.
The Warrington-headquartered group said its return to profits was largely thanks to its continuing focus on ‘back to basics’ and stability within its management team, operations and customer base.
This ‘back to basics’ approach was launched in early 2019 following a restructure in the senior management team and has resulted in the company improving its results year on year.
The company renewed contracts with several key customers during the year and added new volume in targeted areas.
It also announced the strategic acquisition of the Welch Hire business after the year end to increase its coverage in key regions in the UK and Northern Europe.
Abbey also reported over £5m of capital expenditure in new fleet, its washbay and IT systems during the year.
Matthew Male, Abbey Logistics Finance Director said: “Following a strong end to FY20 which saw the Group return to profitability, we have maintained that performance throughout the whole of FY21 due to the improvements made over the past few years.
“These changes have provided the business with a robust platform to be able to respond well to ever-changing trading conditions.”
Dave Patten, Abbey Logistics Managing Director said: “Whilst we were pleased with our performance during FY21, we have continued our focus on ensuring security of supply to customers during the UK supply chain challenges of recent months.
“We have responded by investing in driver pay and engagement, recruitment and training to ensure that we remain an employer of choice in our industry.”
Steve Granite, Abbey Logistics CEO added: “Our strong performance in the face of immense challenges last year gives us further confidence that our business is very robust and can withstand a variety of external challenges including COVID, Driver Shortage and Brexit.
“We will continue to make disciplined investments in our fleet, people and IT capabilities to ensure customer supply chains remain shielded from external pressures, but our sector still faces uncertainty ahead of us in the next 12 months, not only with the continuing impact of Covid and the driver shortage but also challenges associated with rising operational costs in areas beyond our control.
“Despite this, FY21 has given us a strong set of accounts that demonstrate the strength and depth in the business.
“I am encouraged by our performance and strategic direction, which combined with consistent and high demand for our specialist services, puts us in a strong position to navigate the uncertain trading conditions that we may face in the coming year.”