News

The loss of a major contract contributed greatly to the pre-tax profits of Cheshire haulier Boughey Distribution falling by more than half in its latest financial year. Boughey saw pre-tax profits of £1.4m in the year to 31 May 2006 drop to £535,000 in 2007, on turnover that was also down from £27.7m to £27.4m. The company says the loss of the work for HP Foods, after Heinz acquired the firm and took its logistics  in-house, left Boughey with over-capacity for several months. This had a knock-on effect on both turnover and profits.

Managing director Keith Forster says the excess capacity has now been taken up with a contract for Typhoo Tea. He adds that underlying business has now returned to previous levels and expansion at the company means it expects to add more than £15m to its turnover "over the next few years".

He says: "The challenge is going to be to increase profits at the same time." Boughey, whose business includes warehousing as well as haulage, this year put up 27,900m2 of shed space in Wardle, Rochdale. One of the new warehouses will be cooled to allow storage of chocolate products in the warmer months. Boughey was established in 1960 as a milk haulier and acquired by the NWF group in 1972.