C Butt stays with Asda but parts with Netto
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By Hayley Pink C BUTT has conirmed to CM that is has exited its Netto contract, following the grocery chain’s £778m takeover by supermarket giant Asda in May 2010.
The contract exit was revealed in the Northampton haulier’s inancial results for the year ended 30 April 2011, which showed the company’s turnover had increased 14% to £44.1m from £38.7m the previous year, with pre-tax proit up from £173 to £13,048. In its inancial statement, C Butt says its cash position “remains strong and is signiicantly stronger in 2012 following the cessation of a contract and the sale of equipment” .
It adds that the results “relect the prevailing economic conditions”. Furthermore, it includes the effect of the closure of its deined beneits pension scheme .
C Butt signed a ive-year deal with Netto in September 2009, distributing to 193 stores from Netto’s DCs at South Elmsall, West Yorkshire and Daventry, Northampton, but Asda has now completed the integration of the Netto stores into its business. The haulier says it is continuing to work with Asda for its distribution work elsewhere in the business. CM can also conirm that C Butt has applied for the removal of its authorisation at the Netto Northern DC in South Elmsall and has received authorisation to run 30 vehicles and 50 trailers from an operating centre at Langthwaite Business Park in nearby South Kirkby, West Yorkshire.