Groupage operator S&S Distribution says cost pressures are forcing customers to relocate either abroad or further North, resulting in only a small increase in turnover last year. Pre-tax profit fell 11.1% to £317,000 for the year ending 31 July 2007, with gross profit rising just 1.5% to £1.5m.
The Kent-based Palletline member says it lost customers during the period because of the "cost pressure of operating in South-East England". However, it won new business, predominantly regional
distribution work in Kent and East Sussex, to replace this work.
Directors say fuel costs and staff recruitment issues also pose a risk. "The market remains highly competitive and the main risks are that either more companies will continue to relocate to cheaper parts of the UK or abroad, or there will be a significant economic downturn resulting in less work being available to those that remain."
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