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ECM
Operator bullish about future growth strategy following strong results
Turners seeking fresh acquisitions
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By Carol Millett
Turners (Soham) is continuing on its acquisition drive, despite a “dramatic” slowdown in the economy, MD Paul Day has told MT.
Commenting on the company’s latest annual results, which revealed a modest rise in revenue and pre-tax profit, Day said: “We are very pleased with the results. This year started off encouragingly, but there is no question there is a dramatic slowing down in the economy and it is very difficult to predict what will happen. The budgets we set are no longer robust in the current conditions.”
Asked if the firm’s acquisition strategy would be impacted, Day said: “We are a long-term player in the market and we are always looking for opportunities,” adding that he is pleased with the performance of the company’s latest acquisitions.
The Newmarket-based company, which employs 3,975 staff and operates a fleet of 2,252 trucks, acquired MKT Logistics and its three subsidiary companies Matthew Kibble Transport, Shakespeare Transport and Fullforce Logistics in July this year and bought a 50% stake in A Hardwick Haulage in June 2021.
According to its results for the year to 1 January 2022, turnover at Turners (Soham) rose by 8% to £505.5m (2020: £465.4m) with pre-tax profit increasing by 2.3% to £61.2m (2020: £59.8m).
All but one of the company’s four divisions saw revenue rise in the year, with only the general haulage division seeing turnover dip.
Palletline prepares for £6m investment programme
Palletline will roll out one of the most ambitious investment programmes in its history next year when it spends £6m on properties, new technologies and also its network.
It said it had enjoyed “unprecedented success” over the last year, including a 19.4% increase in revenues, and it now wanted to ensure its future sustainability in order to handle the economic headwinds predicted by analysts.
Palletline said it would expand its Coventry and Birmingham sites as well as begin a five-year contract with Linde, which will see a new fleet of forklifts being introduced across the business, some of which will be electric.
Palletline also intends to develop a new IT platform and deliver a seven-figure project implementing CCTV technology on its forklifts, to increase visibility and accountability.
Warning over plans to repeal IR35 changes
Operators planning to hire self-employed drivers following Chancellor Kwasi Kwarteng’s promise to repeal changes to the IR35 offpayroll working rules could still fall foul of the Transport Commissioner and HMRC.
The warning comes from Kieran Smith, chief executive of driver agency Driver Require. It follows changes announced in Kwarteng’s controversial mini-budget, which will once again allow self-employed drivers, operating as personal service companies (PSC) or as limited companies, to manage their tax and NIC affairs and determine whether they are genuinely self-employed, transferring that responsibility away from the haulier or end client.
The government aims to introduce the changes by 6 April 2023. However Smith warned hauliers against rushing to reinstate the use of self-employed drivers since the changes could be delayed by the Parliamentary process.
“This opens it up to substantial risk of challenge, rejection and/or demand for replacement measures and legislation,” said Smith. Operators with drivers who are planning to switch to a self-employed status, without any major changes to the way they work, should also beware, he warned.
ECM losses deepened ahead of buyout
Vehicle transportation specialist ECM (Vehicle Delivery Service) saw losses increase in 2021 as the dual impact of the Covid-19 pandemic and the semiconductor shortage took its toll.
In its latest annual results to 31 December 2021, the company reported pre-tax losses of £553,895 (2020: -£391,578), despite turnover rising to £78.1m (2020: £74m) in the year.
These are the first annual results published by the company since its purchase by Constellation Automotive group in August for an undisclosed sum. The group also owns ECM rival BCA, including BCA Automotive Logistics, BCA Automotive Services and WeBuyAnyCar.com.
In its annual review of the business, ECM said that Covid-19 had dealt a “major impact” in 2021 as well as the semiconductor shortage in the automotive industry.
On the upside, the review noted that at year end the company had cash at the bank of £6.7m, adding that it has held strong cash balances during the year, resulting in “minimal” cashflow risk.
The directors are now looking to secure new contracts and invest in fleet, employees and IT systems. n The integration of Clipper
