Gregory Distribution has recorded an increase in profit and turnover, but describes the current economic situation for hauliers as "extremely bleak". For the 12 months to September 2007, operating profit increased to £4.5m, up from the previous year's £3.5m, while turnover grew to £78.7m from £73.6m. Pre-tax profit rose to £3.3m in 2007, compared with £2.1m in 2006.
John Gregory, managing director, says: "The margin was better than the previous year, although it was tough going throughout
the year. "As soon as we have discussed fuel with our supportive customers, we find this is out of date, and the lag effect of securing an appropriate fuel surcharge is now proving extremely expensive." However, Gregory remains optimistic about his company's prospects, and says there are a "number of good business situations developing with key customers", which will "ultimately drive growth".
He adds the firm is not planning any acquisitions, but remains open-minded if an "appropriate opportunity arises". "We are embarking on a mixture of contraction and development," adds Gregory. "These are extremely testing times and all unprofitable businesses, or firms with customers who do not understand our industry's problems, are under threat."
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