News

Billingham-based transport operator Devereux Developments says its investment in vehicles, trailers and equipment explains a drop in profits.

Gross profit in the year to March 2006 was static at £1.4m but both operating profit and pre-tax profit fell by £100,000. Operating profit was £139,382, down from £238,015 in 2005, and pre-tax profit was £85,455 compared with £185,275 the previous year.

Managing director Ken Devereux says the company had a "reasonable" year financially.

"There was a lot of capital expense on re-equipment," he says, adding that ten new Scanias were recently taken on.

He says the trading picture is mixed - the nine-month period to the end of last year was "much better" than the corresponding period in 2005, but last month was the "worst" January for a few years.

Devereux says the company's membership of Linq Alliance - a consortium of 25 transport firms - is helping to contribute to business. "Over the last 12 months it has been delivering benefits for members," he tells Motor Transport.

The company runs just over 100 vehicles.