News

Burnley-based haulage firm Fagan & Whalley is confident that diversification into niche markets will help the company grow and increase profitability. But commercial director Stephen Fagan concedes that the business environment continues to be "challenging". with operating and pre-tax profit both falling in the year to April 30,2006. Operating profit dipped to £550,885 from £879,878 in 2005 while pre-tax profit decreased to £569,741 in 2006 from £908,801. Turnover grew by 7.8% to £8.7m in  2006.

The company says that a key figure for the firm - return on capital employed - fell to 9.74% in 2006 from 16.4% in 2005. Fagan says that the directors are "quite happy" with the result as they understand that increases in running costs, such as fuel, impacted on profits. "We are pursuing a rate increase campaign and we've been fairly successfull, although some of our customers are reluctant to talk about prices," says Fagan. Fagan believes that diversifying from general haulage is the key to growth.

"We have found that specialising in certain niche markets had been profitable for us," he tells Motor Transport. He points to the setting up of a new break-bulk distribution operation at the company's existing site in Lancashire, helped by the addition of a new warehouse last year. Staff numbers in 2006 went up by nine to 138, while employment costs rose to £3.6m in 2006 from £3.1m in 2005. Directors' emoluments were worth £578,274, a rise from £400,430 in 2005. Fagan  & Whalley runs a fleet of 115 vehicles, including around 70 tractor units.