Administrators fight to save Cross Transport

By Chris Tindall

More than 100 jobs are at risk after a Birmingham-based haulage company called in the administrators.

Cross Transport, which has an operating centre in Swadlincote authorising 20 HGVs, appointed insolvency experts SFP to the business on 5 June.

According to official documents, it was established in 2010.

It operated a range of vehicles, from small vans up to 44-tonners and offered general and contract haulage, as well as palletised freight services.

Its last set of accounts, for the year ending 28 February 2022, showed that turnover had reduced from £22m to £16.4m and it made a pre-tax loss of £157,000.

The previous year it had made a pre-tax profit of £2.3m.

It said it employed 117 staff during the period and in a review

Haulage prices at four-year high, even though inflation still bites

Haulage prices are now at their highest rate for four years with average price-per-mile figures rising by 4.4 percentage points since February, according to a report from the Transport Exchange Group (TEG).

Its road transport price index revealed an overall price-per-mile increase of 1% in May, despite inflation finally hitting single digits at 8.7%. The report said the index had risen by 1.2% year-onyear and May’s figures are the highest for the month since the index began in 2019.

Haulage prices have also shifted

Jobs saved in pre-pack sale

The sale of a Warrington haulier’s business and assets to a new firm after it went into administration has saved 16 jobs.

of its business, Cross Transport blamed fuel and labour cost increases for the loss.

It added: “Overheads have increased in what has again been a year of significant change and overall operating profit and profit before taxation have decreased considerably versus last year.”

According to the office of the traffic commissioner, the haulier was scheduled to appear at a Birmingham public inquiry on 4 July for the TC to consider disciplinary action and the transport manager’s repute.

SFP was approached for comment.

JPA Transport Services appointed administrators Leonard Curtis on 8 June after suffering as a result of a nationwide shortage of drivers and also prolonged restrictions caused by the Covid-19 pandemic. Salary expectations of qualified HGV drivers and soaring fuel costs also took their toll and resulted in JPA falling into arrears with its creditors.

A sale of the company’s business and assets was completed to ABA Transport Services – and all 16 jobs were transferred under TUPE to the purchaser.

Joint administrator Mike Dillon said: “The pre-packaged sale achieved represents the best outcome for the company’s creditors as a whole.” upwards slightly, by 1.3% during the month, compared to courier prices which have hit a plateau with a minimal 0.2% change.

The results contrast with the start of 2023 when haulage prices were at their lowest level for almost two years. The report said diesel price reductions were now picking up pace, with pump prices falling by 2.75% last month, seven times as fast as petrol prices.

It added that the government’s decision to allow longer trailers on the road should deliver a £1.4bn boost for the economy and cut CO2 emissions by 70,000 tonnes.

ON THE UP: Despite a “hugely challenging year”, which saw Gregory Distribution Holdings reduce its apprenticeship programme and run fewer vehicles, profit and turnover rose, aided by high-performing contracts and the integration of the Pollock businesses. The family-owned firm has more than 400 customers and operates a fleet of over 1,000 vehicles and around 2,000 trailers. Reporting its results for the year to 1 October 2022, the business revealed a jump in turnover to £335.6m (2021: £273.4m) and an 8% rise in pre-tax profit to £11.9m (2021: £11m). Within the group, Gregory Distribution saw turnover rise to £262.3m (2021: £215.5m), while pre-tax profit fell to £8.9m (2021: £9.3m). ARR Craib Transport saw turnover jump to £47.4m (2021: £43.1m), though pre-tax profit slumped to £467,000 (£840,000). New recruit Pollock (Scotrans) saw pre-tax profit rise to £2.3m (2021: £951,000) despite turnover falling to £29.3m (2021: £29.8m).