Howard Tenens Logistics attributes its flat growth to uncontrollable factors.
- The company’s turnover increased slightly to £107.5m, driven by warehousing.
- Transport turnover saw a decline of 1.2% due to external pressures.
- Rising energy costs and interest rates impacted the firm’s expenses.
- The acquisition of a new warehouse indicates strategic expansion plans.
Howard Tenens Logistics experienced minimal growth attributed predominantly to economic and political challenges beyond its control. The company’s turnover witnessed a slight increment, reaching £107.5 million for the year ending 30 September 2023, compared to £106.1 million the previous year. This marginal growth stemmed mainly from the warehousing division, which saw revenues rise by £2.2 million, bringing the total to £35.7 million.
Conversely, the transport sector faced a downturn, with turnover reduced by 1.2%, settling at £71.8 million. Howard Tenens reported that rising energy costs, increased interest rates, and the prevailing cost of living crisis adversely affected trading. Despite these hurdles, the firm managed to enhance its gross profit by over 2% year-on-year, surpassing 34% in the period.
The escalation in administration expenses was notably driven by a five-year anniversary rent review on its warehouse premises, a staggering energy cost surge exceeding 240%, and the financial repercussions of a client’s liquidation. Nevertheless, Howard Tenens reported an operating profit of £4 million, equating to 3.7% of turnover, showcasing a notable year-on-year improvement.
Looking forward, the company anticipates continued inflationary pressures impacting costs across various domains, including vehicles, fuel, and labour, along with warehousing-associated expenses. Additionally, customer volumes have shown a decline, influenced by cost of living pressures in the UK. On a larger scale, the global supply chain’s persistent challenges and uncertainties due to geopolitical situations like that in Gaza, maritime threats in the Red Sea, and the ongoing Ukraine conflict, continue to negatively impact Howard Tenens’ clientele.
In January, Howard Tenens took a strategic step by acquiring a warehouse at Huntworth Business Park near Bridgwater, located proximally to junction 24 of the M5, aiming to bolster its footprint in the South West of England.
Howard Tenens Logistics navigates a challenging economic landscape with strategic measures for growth.
