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Jack Richards & Sons has grown pre-tax profits by one-third, but the cost of fuel is still a key pressure. "We have made steady progress," says managing director Peter Brown. But "the haulage business is still a tough area to operate in," he adds, telling Motor Transport that the "storage and distribution [businesses] account for the majority of improvement". The company's pre-tax profit climbed to £565,795 in the year to May 31, 2006, from £424,485 in 2005. Turnover grew by 8% to £16.4m in  2006 from £15.1m in 2005, while operating profit rose to £946,354 in 2006 from £718,101 in 2005.

Gross profit increased to £2.87m in 2006 from £2.55m in 2005. The directors' report says the company is optimistic for the future, "despite an increasingly regulatory climate". "It's tough out there to achieve the rates required to cover the cost of fuel and hiring drivers," says Brown. He points particularly to fuel as a "big cost pressure" for the company and the industry. The storage and distribution businesses offer more stability as they "are less affected by the volatility of fuel," he says.

The company saw an increase of two employees to reach an average monthly headcount of 182 in 2006, but payroll costs grew 13% to £5.46m in 2006 from £4.82m in 2005. Directors' pay rose to £296,060 in 2006 from £260,862 in 2005. No dividend was paid in 2006, but the company paid a dividend of £168,500 in 2005.