Drinks distribution firm Cert has hit out at unnecessary red tape that it says is strangling its business. Chief executive Jeff Stanton makes the swingeing criticism in the company's latest accounts. He says: "Costs associated with the increasingly onerous and sometimes unnecessary regulations issued by the government and other regulatory authorities are an additional challenge to a business like ours."
Stanton also points to rocketing fuel and energy prices which have risen at a rate
above inflation. He adds: "It means you have to continuously improve efficiency as there are not many customers who will accept an 8% price rise."
The Hoddesdon, Herts-based firm saw its turnover rise in the year to June 30, 2006 to £36.5m, up from £34.4m the year before. Operating profit was down, however, to £1.38m from £2.63m in 2005. Stanton is blaming the fall in profits on substantial investment in new facilities including the opening of its 23,000m2 Magna Park service centre in Lutterworth, Leicestershire.
"The need to open the new unit was the result of the group's substantial new business wins in both the drinks and the FMCG sectors," he adds. The firm also plans to open a new 20,000m2 warehouse at Hoddesdon for its fine wine division Octavian.
This received an additional boost last week with the announcement of a major contract
renewal with drinks giant Diageo to manage its wine portfolio. The ten-year deal is believed to be worth in excess of £10m.
Reed Business Information Limited.©2008
