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Schmitz: more trailers, better money
Page 7
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By David Harris
TRAILER-MAKER Schmitz Cargobull cut its losses and nearly doubled its UK turnover in the latest financial year, after changing its pricing stratgey and charging more per trailer.
UK managing director Tom Macallan reveals the company's problems had been were caused by selling trailers too cheaply. "They were a result of taking bad contracts at bad prices," he admits, However, the figures show the trailermaker cut a 2006/07 £8.2m pre-tax loss to £198,281 in the year to 31 March on turnover up from £38.7m to £74.9m.
Despite the improvement, Macallan, still describes the results as "disappointing". He says the company is aiming to maintain turnover and move into pre-tax profit this year. Macallan, who joined the company from Rolls-Royce's marine division in October, says the turnaround is down to a combination of charging more for trailers, selling greater numbers and speeding up the production process using the same workforce.
Schmitz Cargobull sold more than 3.000 trailers in 2007, around 50% up on 2006.
The company has expanded its sales force from only six to 20, and is planning to extend its UK office network from its current County Durham base into six further offices around the country. The first will be in the north-west of England and is expected to be set up this year, becoming operational in January 2009, The location has not yet been revealed, but Macallan does say that it will be "near a motorway junction".