Pentalver: container market is weakening
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By Christopher Walton THE MD of Pentalver has warned there could be casualties in the container market later in the year as the sector struggles with low volumes.
The warning comes as the irm reported turnover and pre-tax proit growth in 2011. Pentalver Transport saw turnover rise to £57.4m in the year, from £55m a year ago, while pre-tax proit rose to £2m, from £1.5m. At sister business Pentalver Cannock, turnover rose to £24.8m, compared with £22.9m in 2010, but pre-tax proit fell from £1.1m to £246,000. MD Chris Lawrenson says: “All businesses are suffering from rate pressure and increased costs such as fuel, insurance, legislation and volume. These factors will mean we see more operators leave the market entirely or consolidate in order to survive. There are shortterm decisions being taken in the market to ensure survival rather than strategic long-term decisions and this is dangerous for the industry going forward.” He says he is pleased with the direction and results of both Pentalver companies, given the current market conditions, but warns that 2012 is proving as dificult “if not more so” than 2011.
Lawrenson indicates that container volumes are still low and the market overall remains extremely dificult.
“The irst six months of the year have been particularly dificult, but we are in a good position with a sound business strategy and a healthy sales pipeline,” he adds.