Family-owned operator Gerry Jones Transport was forced to increase its bank loans last year as the liquidation of a key customer leading to a £250,000 bad debt hit its profits and turnover.
Pre-tax profit at the Newport, Wales-based firm fell 61% to £290,000 on a turnover of £5.9m, with gross profits dropping 14% to £1.6m for the financial year ending 31 March 2006. As a result its overdrafts and loans increased six-fold from £42,000 to more than £250,000.
However, its short-term
debts were reduced by almost £300,000 to £1.1m, due mainly to a fall in amounts due to creditors as well as in hire-purchase agreements and tax.
Proprietor Gerry Jones remains optimistic that the firm will soon return to healthier profits: "We are here to stay. We have started working for several different major clients since [the liquidation] and we have concentrated on our core business."
He adds that "crippling" fuel prices in 2006 also made trading difficult and the firm was unable to pass on all the costs to customers: "At the end of the day, you can't keep knocking on their door. We've got good relationships with our customers sometimes you have to take it on the chin to help them out of a situation."
The company has recently sought planning permission for an extra 2,800m2 of warehouse space to add to its existing 3,800m2.
Gerry Jones Transport was founded more than 20 years ago and has a fleet of 60 vehicles and 100 trailers.
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