Cambridgeshire’s Knowles Logistics sees profit triple, driven by strategic acquisitions and new contracts.
- Pre-tax profit soared to £3.8m, marking a significant rise from the previous year’s £1.2m.
- Key acquisitions, including Masters Logistical Services, played a crucial role in financial success.
- The company’s warehouse and transport investments have fostered substantial growth.
- CEO Alex Knowles affirms sustained progress despite sector challenges.
Knowles Logistics, based in Cambridgeshire, reported a remarkable financial performance for the year ending 31 December 2023, highlighted by a threefold increase in pre-tax profits, reaching £3.8m from £1.2m the prior year. This impressive growth is attributed to successful contract acquisitions and the strategic purchase of Masters Logistical Services in October 2022, which has provided synergistic advantages enhancing overall profitability.
The company, a significant player in the food, drink, and packaging logistics sectors, operates extensive warehousing facilities exceeding two million square feet. Its comprehensive service portfolio includes contract logistics, part-load and full-load transport, retailer consolidation, and more. These services have driven turnover from transport activities to £38.9m, up from £36.3m, with storage and warehousing services also seeing a substantial increase to £23.6m from £13.2m.
Investments in logistics infrastructure have been central to Knowles Logistics’ success. The company’s EBITDA rose to £8.2m from £5.5m, reflecting the impact of depreciation and amortisation on profits due to continued investments. The year concluded with net assets totalling £32.7m, an increase from £30.2m, and cash reserves doubling from £692,507 to £1.3m, demonstrating financial stability amidst significant capital expenditure.
Chief Executive Alex Knowles expressed satisfaction with the company’s ongoing growth, citing strategic acquisitions and fleet expansions as key contributors. “Despite rising sector costs, we’re experiencing another year of sustained growth,” Knowles stated. He noted several transport contract wins in the food and drink sector that have bolstered both the top and bottom lines.
Knowles highlighted the company’s optimal size as a competitive edge, allowing effective service delivery without customers feeling overlooked, an advantage often lost by larger competitors. The firm employs approximately 650 staff—an increase of 500 since 2018—and operates six depots, with a fleet comprising 150 trucks and 250 trailers.
The firm’s commitment to sustainability is evident in its growing electric vehicle fleet, comprising four vehicles running on select operations. Collaborations with major manufacturers and the installation of fast chargers at their depots underscore their plans to reduce carbon emissions and support clients in lowering their Scope Three emissions.
A recent partnership with Shawton Energy has furthered their sustainability efforts, with rooftop solar panels at the Wisbech distribution centre expected to cut annual carbon emissions by 135 tonnes.
In summary, Knowles Logistics’ strategic contracts and acquisitions combine with their investment in green technologies and infrastructure to position the company for continued growth and competitiveness.
Knowles Logistics’ strategic manoeuvres in acquisitions and sustainable practices underscore their remarkable financial growth in 2023.
