Hauliers' profits fears confirmed
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Profits in the road haulage industry have fallen by a penny in the pound in four years, a new report claims.
Industry analyst Plimsoll studied more than 1,000 companies and found the average haulier now makes a profit of just 5.4p per pound invested. Only 29% of the industry made a 10% return on investment and almost a quarter of road haulage companies uses their capital in a "grossly inefficient" way. For each 11 invested, the average haulier sells 11.86-worth of services—an improvement on 11.78 recorded in the last report four years ago. Yet despite this, Plimsoll reckons 23% of read haulage companies have suffered a serious decline in sales relative to assets.
"These companies have some tough and immediate decisions to make." says Don Turkington, managing director of the Middlesbrough-based analyst.