Bibby bursts into the black
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• Bibby Distribution Services, which has been losing millions, is set to announce a profit for the first time since its 1988 launch by parent company Bibby Line Group.
The results are due in June. Managing director Andrew Palmer, who joined the Liverpoolbased operation in September 1990 from TDG, says the 1991 figures will reveal a significant surplus on a turnover of £20m. Palmer predicts that this year's turnover will reach £24m and will produce "satisfactory profits",
The turnaround in the company's fortunes comes after a year of tough cost-cutting measures, including the closure of Bibby's Colchester depot with the loss of 26 jobs. A further 50 driving and warehouse jobs were axed elsewhere and three directors and three managers were asked to leave the ailing operation (CM 30 May-5 June 1991).
Bibby has switched its emphasis to dedicated operations, with six out of its 11 depots devoted to such work, which now accounts for 60% of its turnover. "In the past year we have concentrated on getting back to basics and developing relationships with existing customers," says Palmer.
Bibby is set to announce two new dedicated non-food contracts for a current customer, together worth EIm a year, beginning in May and August.
It is also expanding its dedicated operation at Scunthorpe for Nisa Today, which distributes grocery products to 1,700 independent grocers and wholesalers throughout the UK.
A 9,000m extension to the 15,000rxe Nisa warehouse opens in May and 120 jobs are being added to the 130-strong workforce over the course of the year, including 30 drivers. The Scunthorpe fleet is doubling to 60 tractor units and 180 trailers. "Although retailing volumes generally are down, there are a lot of small grocers out there," Palmer explains. By the end of August Bibby will have spent £2.2m on new vehicles in a 12-month period.
Dedicated contracts started by Bibby have included a national operation, based at Kingswinford in the West Midlands, for brewer AnheuserBusch, and last spring it began a Wellingborough operation distributing to 70 Boots outlets.