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Boughey's investment begins to pay off

16 August 2007

Boughey Distribution is set to boost its profit and turnover with the gradual opening of three warehouses. Boughey's results for the year to May 2007 were "partially depressed" by the start-up costs of the building of three 20,000 pallet capacity warehouses on the 48-acre Wardle, Cheshire, site and the loss of its HP Foots contract when the customer's new owner Heinz moved logistics in-house.

But Boughey's managing director Keith Foster says the first of the warehouses is now full after  taking work since May. "We'll get into the second in two weeks' time," he says. The third is due to take work by October and Boughey expects all three to be full by May 2008. Graham Scott, chief executive of parent NWF Group says: "We're getting fresh turnover this year, but we won't have a full year [of work] until 2009/10." He adds that total investment for the build reached £19m.

Foster reveals 30 new MAN trucks, in Boughey's new livery, will arrive in September. "We've got a bit of a driver recruitment campaign," he says. Operating profit for Boughey Distribution dropped to £1.4m in 2007 from £2.1m in 2006, while turnover dipped to £27m from £27.2m. NWF Group posted a 9% growth in turnover to £320m and a rise in operating profit to £7.1m Scott steps down as NWF chief at the end of October, to be replaced by Richard Whiting.


Sarah Dennis
Email at news@roadtransport.com
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