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Nightfreight says it is pressing ahead with expansion of its two-man delivery network despite increasing evidence of an economic downturn and what it describes as a "difficult" 2007. The firm was hit last year by the unexpected resignation of CEO Steve Allen, who had been in place for just 14 months. However, the Willenhall-based firm subsequently took on former Exel MD Robbie Burns as chairman. Burns says: "Last year was a very difficult one for Nightfreight. Go back to last year and we were  in the middle of storms and floods, and think about the difficulties of running a calibrated network and overlay that with the freak weather

"So you might get 7/10 things right, but the three things you get wrong drop you off the end of a cliff. We had a bad time last year, but the business is not structurally wrong and has a great deal of potential." Burns says Nightfreight's 2007 results - due mid-2008 - will reflect the firm's difficulties, but stresses that its 2008 figures are ahead of schedule so far. However, he warns that overall it's going to be a very difficult year. "I can't remember a more complicated climate," he adds.

The firm says that it is seeing a fall in consignment sizes as well as customers choosing cheaper non-express options, echoing recent comments from express parcel giant UPS. Nonetheless, Burns says that the firm will press ahead with the expansion of its two-man delivery network, taking the total number of depots operating the service to more  than 35 from 22 at present. Burns says that Nightfreight's majority shareholder, RBS, is fully behind its plans. "It is fully supportive of the business going forward there is lots of support for our investment plans. "But they are hard task-masters - they are going to want a return on investment at some stage."