The Preston-based Carefoot Group makes a strategic decision to close its transport arm amid financial challenges.
- The closure affects 33 employees as the company plans to sell its haulage fleet.
- Walter Carefoot and Sons (Transport) has been trading since 1966 providing nationwide haulage services.
- A 20% decline in the construction division’s turnover contributed to this decision.
- Despite a slight increase in transport division turnover, rising fuel prices hindered its performance.
The Preston-based Carefoot Group has taken significant steps to close its transport division, Walter Carefoot and Sons (Transport), in light of challenging financial circumstances. This move impacts 33 employees and entails selling its haulage fleet through auction at Malcolm Harrison Auctioneers on 18 May, including 24 Volvo FH 460 tractors and 20 tipping trailers.
Established in 1966, Walter Carefoot and Sons (Transport) offers comprehensive bulk tipping transport services across the UK, occasionally extending into Europe. The division not only operates its fleet but also partners with non-dedicated subcontractors during peak and seasonal periods, maintaining a fully equipped workshop for vehicle maintenance.
The decision follows a tough financial year for the Carefoot Group. The construction division, Walter Carefoot and Sons (Construction), experienced a 20% decline in turnover, attributed to paused projects and others being cancelled due to inflationary pressures on client budgets. Meanwhile, the overall group saw its turnover fall dramatically from £30.8m last year to £25.7m, with pre-tax profit plummeting to a mere £301,585 from £1.3m.
In contrast, Walter Carefoot and Sons (Transport) recorded a turnover increase to £4.9m from £4.6m last year. However, its growth was significantly hindered by escalating fuel costs. This unfavourable economic environment, despite seemingly stronger performance metrics, led to the decision to cease operations.
The group’s strategic review of their annual results highlights specific ‘client and design team issues’ and budgetary constraints in the construction sector as major factors leading to the transport division’s closure. Carefoot Group has not provided a direct comment regarding this strategic move.
The closure of Walter Carefoot and Sons (Transport) marks a pivotal shift for the Carefoot Group amid challenging economic conditions.
