News

O'Connor Transport (Widnes) has returned to profit in 2006 after a major restructure investment and tripled trading for 2005. Commercial director Peter Lea tells Motor Transport that the company invested €8.5m (£5.75m) to restructure its rail terminal. The company has added two new gantry cranes and new rail sidings, resurfaced the terminal and increased container storage to 5,000.

Pre-tax profit for the year to March 31, 2006 rose to £127,816 from a loss of £200,144 in 2005. Operating  profit hit £134,175 in 2006, up from a loss of £190,023 in 2005. Turnover for the intermodal maritime container specialist grew to £7.84m in 2006 from £7.76m in 2005, while gross profit more than doubled to £927,454 in 2006 from £448,227 in 2005. Net assets were worth £1.19m in 2006, growing from £1.10m in 2005.

"Only now are we seeing the results of [the investment]," Lea says. He "is expecting the following year to be even better", with current results having already outstripped those for 2006. And further development plans are underway, he reveals, including continued expansion of container storage and a new office build. Lea predicts that rail freight is a key growth area for the company. "We see business going that way," he says.

Fuel is not "the be all and end all" of concern for O'Connor Transport, as most of its long distance business is carried by rail. "We're not doing the mileage to burn the fuel," says Lea, as the company's 86 trucks handle more local business,  with journeys averaging 70 miles. The results show that the company shed 50 staff to reach an average of 144 in 2006, while payroll costs dipped to £3.28m, from £3.50m in 2005. Directors' emoluments rose to £203,294 in 2006 from £134,290 in 2005. No dividend to be paid in 2006 was recommended.