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RH Freight's managing director is urging the industry to have more courage in setting rates so firms can make a profit. The European freight specialist is currently reviewing its customer base and MD Ian Baxter is adamant that the industry is not confident enough to charge a premium for providing a good value service. "We want a profit too," he says. "At the end of the day we're asking for a 3% to 4% margin - that's not outrageous! It [RH Freight] is looking at business that doesn't pay its way  - particularly customers that don't contribute to us."

He says the company is focusing on organic growth to reach a target of £200m turnover by 2010. "We're not planning acquisitions," he states, adding that he thinks the company's niche is its "commitment to daily service [across Europe]." He adds: "It gives us the option to even out the flow of traffic and improve frequency of departure. That way we get better vehicle utilisation."

Baxter says RH Freight's move to an east London depot in 2009 is due to the company anticipating a need for more space. But he concedes "now is definitely the time to develop in London", referring to the 2012 Olympics. Baxter says the company will invest around £20m in the new premises, and will be selling its current site in Thurrock.

Year-end results for RH Group reveal record turnover growth of 32% to £119m in 2006, from £91m in 2005. But Baxter points out: "In the end our pre-tax profit hasn't risen. The levels of cost increases  make it tough to increase the bottom line." Pre-tax profit fell to £3.0m from £3.2m in 2005, which Baxter says is the result of start-up and integration costs after the acquisition of Finnish firm Hacklin Roadtrans - renamed Oy RH Global Logistics.

"2006 was buoyed up by an acquisition - we're not doing that in 2007," Baxter says, adding that he forecasts a 15% year-on-year turnover growth for the current year.