Business as usual for ArrowXL, despite parent group falling into administration
Logistics Group, the parent of Wigan-based logistics specialist, ArrowXL, has fallen into administration.
However, ArrowXL CEO Charlie Shiels, told TheBusinessDesk.com that it is business as usual for the company, despite the development.
It is understood Logistics Group’s banker, HSBC, its main lender, was behind the move to place the group into administration, which happened last Friday (March 22)
Daniel Butters and Daniel Smith, of Teneo, were appointed joint administrators by HSBC.
Until last month, the company also owned Liverpool-based Yodel Delivery Network, which was sold to a privately funded consortium, saving thousands of jobs.
Logistics Group is owned by the Barclay family, which also owns Liverpool-based online retailer, Very Group, a client of ArrowXL.
The Barclays also owned the parent company behind the Daily Telegraph, which fell into insolvency. HSBC has several registered charges against the company.
ArrowXL, which has its headquarters in Martland Mill Lane, Wigan, and further sites at Worcester, Airdrie, Carrickfergus and Enfield, delivers more than two million customer orders a year for retailers, ecommerce companies and manufacturers.
In February this year it announced significant investment in expanding its Doncaster site.
Charlie Shiels told TheBusinessDesk.com: “You may have read about our non-trading holding company, Logistics Group Limited, being placed into administration on Friday, following the successful sale of Yodel Delivery Network Limited.
“We would like to reassure our customers, partners and people that ArrowXL’s trading and operations are not, and will not be, impacted in any way by this shareholder-related matter.
“We remain a profitable and cash generative business.”
He added: “It is business as usual for ArrowXL as we approach the busy Easter and Spring Trading period.
“Our plans for 2024 continue without disruption or delay and we remain focused on putting our customers first and being easy to do business with. Our new Sugar CRM system has just gone live with industry-leading client and consumer benefits, and we can’t wait to tell you all more about it and other exciting initiatives.”
ArrowXL deliveries include domestic appliances, furniture, sofas, beds and mattresses and garden items.
It is a two-person home delivery and warehousing specialist, with a focus on bespoke services.
In June last year ArrowXL extended its latest accounting period from June 30, 2022, to December 31, 2022. But Companies House records show its latest accounts are now overdue.
Its last accounts filed, for June 30, 2021, showed revenues of £114.872m, up from £90.285m in 2020, and a pre-tax profit of £1.899m, compared with a pre-tax loss of £465,000 the prior year.
This was due to an unprecedented rise in home deliveries driven by the Covid-19 lockdown rules.
The accounts showed the company had fully repaid a £192,000 government Covid-19 loan from the previous financial year, together with £57,000 for the 2022 year.
The directors’ notes to the accounts said: “The directors are confident that ArrowXL will continue to be profitable on an EBITDA basis in the year ending June 2022.
“The shareholder remains supportive of ArrowXL and is committed to its success.”
