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Who's making what?

6th July 2006, Page 9
6th July 2006
Page 9
Page 9, 6th July 2006 — Who's making what?
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Profits at Cardiff-based transport firm Rhys Davies fell in lhe year to 31 August 2005, despite a £2m rise in turnover. Pre-tax profits were down 68% from £496,486 to £157,044 while turnover rose to £29.6m.

The directors blame the fall on set-up costs associated with new contracts and on rising fuel prices. They predict that prof its will be higher in the year ending 31 August 2006.

Fuel costs were also highlighted as a reason for eroded profits at Scottish firm Maxi Haulage. It reports a "very difficult trading year" ending 30 September 2005 during which it suffered pre-tax losses of almost 2500,000, compared with a pre-tax profit of £658,192 in 2004. The directors' report adds: "Following the introduction of the Road Transport Directive, the company began to suffer losses in certain areas which have now been corrected by reorganisation and elimination of some services that could no longer operate economically under the new regulations.

"The company is now trading profitably again and turnover is not likely to be significantly affected by the changes."

Pre-tax prof its held steady at courier and pallet distribution specialist Mainland Group. It made £196,218 during the year to 31 January 2006, despite a rise in turnover from £3.6m to .£4m. Turnover was boosted by its acquisition of Eurocontinental Logistics, Somerset-based haulage firm FIT Keedvvell is predicting "growth and continued profitability" in its accounts for the year ending 31 October 2005. Pre-tax profits slipped slightly from £1.2m to £879,426. Keedwell has set up a joint venture with Gloucestershire firm, CM Downton.

Pallet network TPN blames a drop in pre-tax prof its for the year ending 31 March 2006 on the costs of moving to its Rugby hub. However chairman Richard Eldred says: "The relocation to substantially larger premises was essential to ensure that the growth and efficiency of the network could be serviced both for the short and longer-term future."

He predicts that any future volume growth will translate directly into bottom-line profitability. R 1-1 1 5 DAVI E S RHYS DAVIES

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People: Richard Eldred
Locations: Cardiff, Somerset

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