John G Russell (Transport) says it "severely underestimated" the impact on customers and suppliers of a subsidiary company it bought from administrators, which led to a group pre-tax loss last year. The Scottish transport group acquired the former Norfrost freezer manufacturing business in September 2005, renaming it Icetech.
But the fledgling operation and its new management team struggled to meet production targets. As a result, Russell's accounts for the year ending 31 March 2007
show a pre-tax loss of £12,000, compared with a profit of nearly £2.9m in 2006. Turnover rose £5.7m over the period to £44.1m. The group experienced "modest growth" within its transport and warehousing operations, with net sales growth rising close to 5%.
A statement from the directors says: "With positive performance from core activities and continuing improvements in Icetech, the company expects to restore some degree of normality to the current year's performance." The Russell Group specialises in road and rail transport operations from sites across Scotland, with depots in Cumbernauld, Hillington, Stirling and Kirkcaldy.
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