News

SJ Bargh has grown pre-tax profit by 26% but sees challenges ahead.

The directors state in the company's latest abbreviated results that "the business environment in which we operate continues to be challenging". Managing director Stewart Cornthwaite tells Motor Transport that "fuel and labour" are the company's biggest costs and challenges.

But pre-tax profit for the haulage contracting and warehousing company has risen to £2.06m in the year to April 30, 2006 from £1.63m in 2005.  The directors' report states that business performance is "in line with expectations", with Cornthwaite elaborating: "Warehousing, property and other investments have affected our overall result."

"Extra profit has come from our other investments - they've done a lot better than haulage has done," he adds.

Operating profit has grown at a similar rate to pre-tax profit, increasing by 27% to £1.93m in 2006 from £1.52m in 2005, while gross profit has risen to £3.76m in 2006 from £2.99m in 2005. Net assets have grown to £8.40m in 2006 from £7.16m in 2005.

Average staff numbers during the financial year increased to 136 in 2006 from 118 in 2005, with the firm taking on 17 drivers, fitters and warehouse staff. Staff costs rose by 18% in 2006, to £3.33m from £2.81m in 2005.

Directors' emoluments were worth £100,652 in 2006, a rise from £87,130 in 2005. Equity dividends paid on ordinary shares totalled £210,847 in 2006, a rise of 40% from the £150,591 in 2005. Proposed  dividend payments after the year end were worth £376,377 in 2006.