Freight transport company slips to a loss amidst economic headwinds
Haulage company, Clugston Distribution Services, has said national and international economic challenges which are out of its control continue to have a negative impact on its operations.
The Scunthorpe-based business has published its results for the year ended 29 March 2025, reporting a pre-tax loss of £558,806 compared to a profit of £102,328 in the previous year. It also recorded revenues of £21.9m (2024: £21.3m).
In its report, the company stated: “The direct costs of operating the business in a highly competitive market increased by seven per cent, resulting in a gross margin reduction from 16.26 per cent to 13.10 per cent.
“A significant part of the loss was a result of establishing a new haulage division in the year in the South of England, which is now operating profitably.
“The management of the company continue to monitor the divisions that are performing and those which are struggling and taking the appropriate action to reduce losses.
“The strategy is still to seek our opportunities to diversify its product range and invest in maintaining a reliable fleet of vehicles.”
The firm, which employed an average of 179 staff in 2025, noted that in February 2025 it entered into a Company Voluntary Arrangement, which initially caused some disruption.
However, it added that with the “strong support of employees, customers and stake holders” the company continues to operate with no significant impact from this event.
Clugston Distribution Services said its commercial vehicle maintenance division continues to grow both its customer base and provision of services to specialist hauliers.
