News

Taygroup chairman Nick Taylor warns that large "3PL" companies swooping in to "buy business" could be a threat to the industry. He tells Motor Transport: "There will be fewer players out in the marketplace," if the trend continues for large companies to "quote business at unrealistic levels. I find that more of a threat to the industry than [fuel]", he adds. Those who say rising fuel costs are a concern are using it as "an excuse". He recognises "it has been difficult", but "it's not a continuing  concern and at the moment prices are coming right down". Taygroup has had a "very good year", says Taylor of the latest results for the year to March 31, 2006. Pre-tax profit almost doubled in 2006, to £2.63m, from £1.32m in 2005. Operating profit dipped slightly to £1.50m in 2006 from £1.53m in 2005, but gross profit climbed to £6.37m in 2006 from £6.01m in 2005.

Turnover grew to £21.4m in 2006 from £21.2m in 2005. The company sold its 80% shareholding of its truck rental business, Tailored Hire Group, in July 2005. Taylor tells MT that while it accounted for some of the profit growth, the sale lost Taygroup £4m in revenue a year, but "we've gained that and more" in new business for the core transport and warehousing operation. The results account for both the continuing operations and the discontinued truck rental business. Warehousing is a big growth area for the company in the future, Taylor says. It accounts for around 15% of overall revenue - "we'd like that to be close  to 40%". Taygroup is aiming to fill remaining spare capacity at the 25,000 pallet space operation in Biggleswade that opened in June. Taygroup owns the site, which has a long-term contract with Jordans as a base contract.

Three months ago, operations at Manchester and Skelmersdale were moved to a new depot at Wigan. Taygroup's consolidated net assets were worth £3.13m in 2006, up from £2.75m in 2005. Company results show net assets of £1.67m in 2006, rising from £994,039 in 2005. The company has added 100 new trailers to the fleet, along with 18 Volvo trucks to replace Scania lorries. Average monthly staff numbers remained static in 2006 from 2005 at 113, while payroll costs increased slightly to £3.74m. Directors' pay fell, to £319,983 in 2006 from £414,885 in 2005. Dividends on equity shares of £1.5m were paid out in 2006, up from £200,000 in 2005.