Fergusons Transport has experienced significant financial pressures due to rising interest rates and inflation.
- The company’s pre-tax profits have sharply declined, dropping nearly two-thirds to £172,000.
- Despite these setbacks, Fergusons’ annual turnover increased by £1.3m, reaching £25.7m.
- The company has witnessed reduced gross margins in both haulage and warehousing sectors.
- Staff numbers have increased modestly, suggesting ongoing operational adjustments.
Fergusons Transport, a key player in the haulage and warehousing industry, reported a pre-tax profit decline of almost two-thirds, from £477,000 to £172,000, attributed to escalating interest charges and inflation. This financial strain occurred in an environment where customers were resistant to absorbing added costs.
Despite these challenges, the company noted a rise in turnover, moving from £24.4 million to £25.7 million, driven predominantly by its haulage operations, which contributed £19.1 million, followed by warehousing at £4.7 million, and fuel sales alongside other recharges at £2 million. The firm’s strategic efforts to alleviate financial pressures were not fully realised as gross margins for haulage decreased from 15.6% to 14.7%, and warehousing margins dropped from 32.2% to 27.7%.
Fergusons remains cautiously optimistic, citing an easing of inflationary pressures and projections from the Bank of England indicating potential interest rate reductions. The company expressed a belief that these factors will aid in the stabilisation of costs, allowing for a more favourable financial landscape moving forward.
Furthermore, the company reported an increase in staff from 264 to 275, reflecting their efforts to sustain operations amid challenging market conditions. This suggests a commitment to maintaining service levels while navigating economic uncertainties.
Economic pressures have significantly impacted Fergusons Transport, but strategic measures and market outlook provide cautious optimism for the future.
