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Archbolds' profits down

21st June 2007, Page 9
21st June 2007
Page 9
Page 9, 21st June 2007 — Archbolds' profits down
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TURNOVER AND profits at Yorkshire haulage company Archbold Logistics fell in 2006, but the company expects both to pick up this year.

Turnover fell for the second consecutive year, down to £16.5m in the year to 31 December 2006 from just over £17m in 2005 and £18m in 2004. Pre-tax profit fell from £615,000 in 2005 to £355,000 last year.

The slump in profits has been put down partly to the sale of some assets in 2005, which artificially boosted that year's figure. Xavier Archbold, business development director, says Archbold's accounting methods are conservative and all vehicles are eventually written down so they have no value on the books. This means that when those vehicles are sold, as some were in 2005, they provide a profits boost.

Archbold adds that the company is optimistic about business in 2007 because a significant amount of new work has been added from existing customers. The firm works for a number of household names, including breakfast cereal specialist Kellogg's.

Like many other hauliers, one of Archbold's aims is to increase its profit margins, which last year were onlyj ust over 2% of turnover. "It certainly remains a long-term objective to improve the margins," says Archbold.

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