Circle Express' first quarter for the 2007 financial year is "much better than expectations," managing director Chris Coffey says. He adds that this year is "looking positive" but it will be hard for the industry due to higher interest rates and the volatility of fuel costs. "We only need a serious cold snap and all the savings will turn round," he says.
Latest results for the express distribution company show a pre-tax profit
of £151,354 in the year to August 31, 2006, rising from a pre-tax loss of £32,894 in 2005. Operating profit has climbed to £329,463 in 2006 from £134,886 in 2005, while gross profit nudged up to £4.5m. The company's turnover dipped to £22.4m in 2006 from £22.6m in 2005 while total assets less current liabilities slid to £1.5m from £1.7m the year before.
"We're now starting to recoup from investments," Coffey says, including business acquisitions, a head office move and new depots, which "are up and running". Circle Express is "looking at possibilities for further acquisitions", he adds.
Average monthly staff numbers in 2006 rose by nine to 280, but payroll costs dropped to £6.4m from £6.5m in 2005. Directors' emoluments were worth £275,637 in 2006, more than double the £136,697 paid in 2005. No dividend payment was recommended for 2006.
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