Nottingham-based RH Group is ploughing ahead with its expansion plans with an investment in a new 20,000 m2 hub in the south of England, due to open in 2011.
In 2007, RH Group MD Ian Baxter said the company would invest around £20m in new premises in the south, and would sell its current site in Thurrock.
Speaking to MT, Baxter says: "While there are clearly downsides in the current environment there are good
opportunities as well and we believe there has seldom been a better time to make a major investment in hub development."
The company recorded a 1.6% drop in pre-tax profit to £3.5m for the year to 31 December 2008, while operating profit fell to £4.3m, from £4.4m in the previous 12 month period. Turnover rose 5.5% in 2008 to £129m.
Baxter adds: "While our profit for the first half of 2009 will be modest, we now expect full year results to be close to those of 2008."
To cut costs, RH has decided to employ its Eastern European subcontractors on an ad-hoc rather than fixed basis, and to consolidate freight planning at its Nottingham base. The firm is also buying 60 new trailers from Krone and Schmitz Cargobull.
Reed Business Information Limited.©2009
