Palletline's profits fell almost 20% last year after overall administration costs increased and technology investments were made to keep the network competitive. However, turnover for the original hub and spoke distribution network rose by more than 15% to £10.7m for the year ending 30 June 2007, due to "unprecedented growth in hub volumes and depot distribution revenue".
An aggressive cost reduction programme and a focus on the service-sensitive segment of the UK market also contributed
to its financial performance, it says. The pallet network says the market continues to remain competitive, as well as volatile. Pre-tax profit was £921,000 for the period, down from £1.1m in 2006, providing a margin of 8.6%. A company statement says: "The main uncertainty is the rate of growth going forward." Managing director Kevin Buchanan was unavailable for comment.
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