Currie European Transport experienced a £3m drop in turnover last year due to lower fuel surcharges as diesel prices steadied.
- The company’s revenue decreased by 8.8% to £31.4m, while pre-tax profits saw a sharp decline, falling 73% to £67,000.
- Ocean freight prices returned to pre-pandemic levels, contributing to the financial adjustments faced by Currie European Transport.
- Despite ongoing pressures, the UK transport services managed to maintain resilience in their financial and service performance.
- Challenges like rising fleet operating costs and a persistent skills gap in the driver market necessitate continual customer pricing reviews.
Currie European Transport attributed a significant £3m turnover decline last year to the application of “significantly lower” fuel surcharges, following the stabilisation of diesel prices. This adjustment resulted in an 8.8% reduction in revenue, amounting to £31.4m by the end of June 2023. Coupled with this decrease, the firm’s pre-tax profits plummeted by 73%, reaching only £67,000.
Furthermore, the period saw ocean freight prices reverting to their pre-COVID levels, dropping approximately 80% from the exceptional peaks witnessed earlier. Currie European noted that freight volumes in the European road freight sector remained low, with the UK export market particularly affected. Despite these challenges, the company expressed satisfaction with the robust performance of its UK transport services.
The resilience of these services is noteworthy, given the prevailing cost pressures. The firm highlighted that operational costs for their fleet had increased significantly. This rise has necessitated continuous scrutiny and adjustment of customer pricing and profiling strategies. Moreover, while the industry has seen some relief from driver shortages, a notable skills gap persists, particularly in attracting new drivers to the field.
During the same period, Currie European’s subsidiary, Laser Transport International, reported a relatively stable turnover of £20.9m, close to the previous year’s £21m. However, its pre-tax profit reduced by 29.8%, amounting to £595,000, reflecting the broader financial strains within the industry.
Currie European has faced numerous operational challenges recently, with the upheaval caused by Brexit, the ongoing conflict in Ukraine, and substantial fleet running costs. In 2022, the firm managed to return to profitability, achieving a £253,000 pre-tax profit for the first time since 2015. Despite these adversities, the company remains optimistic about its ongoing transition and development.
Currie European continues to navigate financial pressures and operational challenges with cautious optimism and strategic adjustments.
