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Business Post-owned pallet network UK Pallets says growth in Europe is the network's current focus. "Europe is an area of growth for us," says commercial development director Graeme Wilson. "It's a small part of our business [at the moment] and we have plans to develop it in conjunction with some of our members. "The world is getting smaller and European distribution is not as complicated as it used to be. Three or four members currently do it [European deliveries] we're expanding the service  and will really push it." Wilson says planning permission to expand UK Pallets' 140,000ft2 Fradley Park, Lichfield hub by another 70,000ft2 has been submitted.

The network averages up to 5,500 pallets a night and now has 79 members, with nine joining in the past six months and another eight due to come on board. Wilson is targeting 10 extra members a year to sustain its forecast growth over the next three years. He says the network achieved a 14% growth in volume last year and is on track for a 10% to 15% growth rate in 2007.

"The days of big growth are gone, and we're at the levelling-off phase," he states, adding that: "Organic growth is to come from our current members, and we will continue to look for new members." Latest results for UK Pallets show the network doubled pre-tax profit for the year to March 2007, to £1.03m, from £685,000 in 2006. Revenue nudged up by almost 6% to £29.1m, from £27.5m in 2006. Wilson says margins hit around the 5% level. He joins the  debate over the saturation of the pallet network sector by voicing his agreement about the lack of quality hauliers out there: "There is plenty of volume for everybody. Where I believe the issue is the right people to deliver it," he says.