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Job drive battles costs
Page 7
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• Logistics company, the Malcolm Group, Is to launch a recruitment campaign for HUI/ drivers after its agency casts spiralled from £01m in 2001 to £1.2m last year.
The huge rise in costs—reported in the company's preliminary results for the year ending 31 Jan 2003—was in part due to start-up costs during the initial phase of new contracts.
However, the company says its logistics division has 'icontinued to utilise higher levels of agency labour and sub-contracting to meet customer requirements".
But It says it has now taken steps to reduce its reliance on this resource. Chief executive Andrew Malcolm says it has already embarked on recruitment drives and Is securing discounts from driver agencies. But he adds: "The issue is not one merely of cost, but also quality of resource and the churn of agency staff."
The company says it has also suffered from increasing insurance premiums—but is seeking, "wherever reasonably possible" to pass operating cost increases onto customers.
It adds that rivalry among service providers has become more marked, and there is increased pricing pressure.
Contract wins, however, led to a 24% Increase in turnover to 168.8m for its logistics division, leaving an operating profit of £8.11n—up £0.2m on the previous year.
emma.pennygrbi.co.uk