Erith Haulage Company drives back in the black
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ERITH HAULAGE COMPANY has turned a £631,000 loss into a £51,000 proit after introducing a cost-reduction programme at the Kent-based business.
However, turnover decreased by 16% to £14.7m in the period ending 30 September 2010, compared to £17.5m a year ago. The company, in its report to Companies House, blames the drop on “decreased growth in its existing business along with a decreased demand from its fellow subsidiary Erith Contractors and a general decrease in demand from the market”.
Gross proit margins rose to 13%, from 6%, during the year due to a structured pricing policy the company introduced.
Erith says the market remains highly competitive and that it is working against “smaller companies fostering strong local reputations and larger plcs competing on price”.
It adds: “The company seeks to maintain its history of strong growth by competing aggressively on price while providing added value to its customers.” Erith Haulage was unavailable for comment.