News

The Pallet Network (TPN) is anticipating acquiring new members as a result of the fuel crisis and is upbeat about future prospects despite the current economic uncertainty.

Speaking to MT, as the firm unveiled its latest financial results, managing director Adam Leonard says: "The sharp rise in fuel costs will focus operators on the network model. We expect to see a modest increase in our membership numbers, which will add pallet volumes on top of organic growth. Our current hub facility  will accommodate these predicted volumes over the coming financial year."

Operating profit at the Rugby-based network for the year to March 2008, rose to £2.1m from £1.5m in 2007, while pre-tax profit increased by 40% to £2.2m last year, up from £1.6m in the previous 12-month period. Turnover went up 20% to £38.2m, from £31.7m in 2007.

Leonard adds: "We feel that the current and predicted economic climate will be extremely challenging for all the networks and their members. However, the network model provides a cost-effective solution to the movement of smaller loads. As order quantities reduce as a result of the economic slowdown, we would expect to see an increase in pallet numbers as those orders are transferred from general haulage operations."

In November 2007, Leonard and finance director John Bowers completed a management buyout.