Express freight network Palletways said today it has been continuing to grow its operations despite a fall in profits from “challenging” economic conditions within Europe.
The group issued its latest results today, covering the 12 months up to the end of May 2011, revealing a 7% growth in turnover, which was up GBP 10.4m to GBP 157.9m compared to the previous year.
Earnings before tax were down 6% to GBP 6.4m compared to the previous 12 months, but Palletways said this was in line with expectations given the trading conditions and network expansion, particularly in Germany.
Susan Hundleby, the Palletways Group finance director, said: “Our established businesses showed significant profit growth during the year and these results demonstrate our ongoing strategic investment in our German domestic operations and in the pan-European network operated by Palletways Europe GmbH.”
“While we continue to remain cautious due to the challenging economic climate and the situation in the Eurozone, we are excited about the potential of all our investments,” she said.
Founded in the UK back in 1994, the palletised freight network now extends into 11 European countries, last month launching a 48-hour service from the UK to Germany.
Hundleby said the network’s continental European networks now account for 32% of group revenue.
“Our new German network gives Palletways the opportunity to provide services in Europe’s largest logistics market,” said the group finance director. “In addition Palletways GmbH is launching its new market-leading premium+ 48-hour delivery service between Germany and the UK. These developments enhance our service offering and open up new business opportunities for our customers and members.”
Palletways now has hub operations within the UK in Staffordshire, London and Edinburgh, while in continental Europe the network has hubs in Germany, the Netherlands, Italy and Spain. Collection and distribution services in France are provided through subcontracted operations.
The network currently handles around 25,000 pallets each day across its operations, offering a services for small consignments of palletised freight including a next day, next day AM, and other timed delivery options, along with an economy service.