Growth strategy pays dividends for Nightfreight
A PROGRAMME of investment and expansion of its client base has proved the recipe for success for Black Country-based logistics firm Nightfreight.
The Willenhall firm said progress during 2010 was expected to be reflected in rising profits and revenue.
Latest financial results posted for its year-end November 30, 2010, show pre-tax profits of £48,394.
Such has been growth this year that the firm, owned by parent company Penglais Investments, is predicting pre-tax profits of £2m for its year-end November 2011, with turnover expected to reach £123m.
If the level of growth can be sustained, the firm said it was hopeful of next year seeing pre-tax profits of £4.6m and revenues of £130m.
The results have been achieved against a difficult trading climate where existing customers again shipped less volume. Revenues of £117.8m were in line with company expectations.
Ian Horsfall, group finance director, said: “We’re pleased to announce after a year of restructure and investment, we are now delivering growth over the next two years.
“Against a challenging economic climate, we have remained focused on delivering a quality service and providing greater value for customers.
“We’ve established a strong platform going forward as part of our three-year strategic plan with repeat business, major new client wins and operating more efficiently.”
He said the year had seen significant demand for its specialist Deliver2home and network solutions services, as well as new business wins in the one-man parcel sector including Bosal UK, Moore Large & Co and Fusion Provida. Other gains came from Spicers, Iforce and Carpetright.
Repeat business was also significant, with major dedicated logistics contracts being renewed with Office Depot, Jungheinrich, Vacu-lug and Rapid Racking.
The company employs more than 2,000 staff across 53 operating sites nationwide and has a fleet of 1,097 vehicles.
Mr Horsfall said the plan now was to continue to add value to its current and future customer base. This would be achieved by means of further investment and innovation. There will also be a focus on improving fuel efficiency and reducing costs.
Future plans include the creation of a new depot model which will be rolled out across the group, while it will also introduce in-cab hand-held devices for its entire one-man network.
