Great Bear Distribution, a prominent Chester-based logistics company, saw a significant reduction in pre-tax profit in 2023.
- The firm’s financial setback is attributed to various challenging market conditions, including rising inflation and staff shortages.
- Despite increased turnover due to strategic business moves, the profitability was severely impacted by increasing costs.
- The company maintains a strong market presence and is confident in overcoming current economic adversities.
- Directors express satisfaction with the service quality and financial stability, amid the unsettling profit figures.
In a revealing financial disclosure, Great Bear Distribution reported a stark 31% decrease in pre-tax profit for the year ending 31 December 2023. The logistic giant, celebrated for its extensive network and operational breadth, has encountered substantial economic challenges that are largely shaping its recent financial outcomes.
The company’s strategic report highlights the confluence of factors contributing to its fiscal distress, particularly pointing to surging inflation and notable shortages in warehouse workers and drivers. These labour market difficulties have exacerbated operating conditions, directly influencing the firm’s profitability margins.
Despite these adversities, Great Bear was able to report an increase in turnover, largely credited to the transition of warehousing operations from Eddie Stobart. This move bolstered their revenue by an impressive £118.4 million, bringing the total turnover to £525.2 million for the year. However, these gains could not offset the dramatic rise in the cost of sales – escalating by £89 million from the previous year.
Administrative expenses also added to the financial burden, rising from £65 million to a hefty £98.9 million. Additionally, finance costs saw a steep increase, nearly quadrupling from £6.8 million to £26.8 million, further straining the company’s net profits.
The directors of Great Bear, nevertheless, conveyed optimism in the face of these challenges. They assured stakeholders of the company’s robust financial health, underscoring its market-leading service quality and substantial funding that positions it well amidst the prevailing economic climate.
Great Bear Distribution remains resilient and strategically poised to navigate economic difficulties, underscoring its market strength and service commitment.
