Nightfreight aims to drive out costs
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• Owner-drivers and subcontractors are witnessing the end of a period of windfall activity at parcels carrier Nightfreight as the company tries to improve its troubled finances.
Chief executive Ron Sullivan says Nightfreight is looking for ways to "drive out the extra costs" mused by the failure of new handling technology at its Wolverhampton hub shortly before Easter.
Installation problems encountered with the new handling system forced it to use more subcontracters to meet its parcels delivery deadlines.
Last week Nightfreight revealed that sorting out the mess caused by the new system
slashed Lim from its pre-tax profits in the six months to 31 May, leaving the company with pre-tax profits of just L805,000, even though its turnover rose by 15% to £44.2m.
Some of the losses Win alsii caused by the collapse of a major customer which owed the company £100,000.
At the results announcement last week, chairman David Cobb told shareholders the problems are now fixed and that the company's productivity levels have risen by 20% over the past eight weeks.
But it has abandoned plans to buy two more companies until it makes sure its own systems are working properly.