Pre-tax profit at Stephen Sanderson Transport has dropped by 58% despite an increase in sales.
The latest results for the road haulage and parcel delivery company state that "the company's overall level of turnover increased by 10% compared to the previous year". But pre-tax profit for the year to December 31, 2005 fell to £176,414, from £423,985 in 2004.
Gross profit dipped by £0.1m to £1.30m in 2005 from £1.40m in 2004, while operating profit has tumbled to £230,109 in 2005 from
£474,446 in 2004. The company's net assets have grown to £2.16m in 2005 from £2.02m in 2004.
The report states that the company is confident it "will remain in a strong position with much improved results in the coming year".
It points to increasing costs to the industry, particularly fuel, as a key reason for profit dropping, but also states "the company wage costs contributed to the overall fall in returns".
Staff costs grew by 2% to £2.34m in 2005 from £2.29m in 2004, but the company increased average staff numbers by three people to 75 in 2005, a rise of 4%.
Directors' remuneration and other emoluments fell to £279,994 in 2005 from £365,741 in 2004.
The company paid no dividend in 2005, after paying dividends on equity shares of £58,750 in 2004.
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