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TPN boss warns of unrealistic margins

21st July 2011, Page 11
21st July 2011
Page 11
Page 11, 21st July 2011 — TPN boss warns of unrealistic margins
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Keywords : Packaging, Pallet

By Chris Druce MORE HAULIERS will go under in the coming year unless their customers adopt a more realistic approach to margins, the MD of The Pallet Network (TPN) has warned.

Adam Leonard, whose pallet network has more than 90 hauliers as members, says that while overall volumes have staged a comeback in recent years and appear healthy, the current margins operators are being forced to run on are not sustainable.

“[Suppliers] are all competing across the sectors to squeeze costs and it’s unrealistic to expect irms to continue to deliver goods on current margins,” says Leonard. “This is going to catch up with us soon. We’ve already seen plenty of hauliers go under and there’ll be more to come during the next 12 months.” Leonard says there are still too many good, solid, businesses in the sector that can’t get the cash they need to expand because of reluctance among the banks to lend. He fears the sector is losing people it can ill afford to: “The biggest single issue to come out of the recession facing us now is a lack of new blood. Transport is the lifeblood of UK plc, but given current margins, the long hours and burden of legislation you have to ask yourself would you set up a business in transport at the moment?” TPN recorded increased turnover in the 12 months ended 31 March 2011 thanks to increased volumes, up 18.3% year-on-year to £46.4m (2010: £39.3m).

Pre-tax proit edged up 1.8% to £2.3m (2010: ).

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