National supply chain specialist Nightfreight has turned in positive financial results for the year ended 30 November 2009 with profits up, in line with the company’s growth strategy.
The Willenhall, West Midlands based Nightfreight group of companies – owned by parent company Penglais Investments Ltd – reported increased pre-tax profits of £2.0million, up on the previous year by £0.18million.
Although a difficult trading climate where existing customers shipped less volume and revenues fell by £15.5million on 2008 figures to £121.8million, margins for the year improved slightly and were in line with company expectations in a challenging marketplace.
The growth in profits reflected the efforts of a number of successful initiatives to improve customer service and operating efficiency, creating greater customer value.
Group finance director Ian Horsfall said: "During the period, we established a strong platform for growth which is part of our three-year programme of transformation. This will see further service development and continual operating efficiency improvements."
The strength of Nightfreight as a repositioned ‘network solutions’ business is its ability to mix and match the combination of dedicated, shared and network services offered, delivering a more variable cost proposition for customers, that need B2B and B2C delivery services.
Progress throughout the year has seen the company – which employs 2,100 staff across 60 operating sites nationwide and 1250 vehicles – add new customers to all areas of the business and heightened service levels.
Nightfreight’s progress is underlined by the volume of repeat business on its books with major dedicated logistics contracts being renewed last year with Office Depot, Jungheinrich and Elastogran.
New accounts wins with SWS UK, Universal Aluminium Systems and Wilkinson were gained with these customers taking advantage of the dedicated, shared user and network services of the group to deliver to their customers
Testament to Nightfreight’s capability to support customers in difficult economic conditions was the introduction of variable charging solutions with ‘pay as you go.’ This solution helps companies make their fixed cost base more variable – an essential ingredient for companies when they want to scale their costs to their levels of activity.
As well as becoming agile in managing its costs, the company has continued to invest in the future explained Mr Horsfall.
"Our investment in vehicle telematics across the fleet will sustain the 30 per cent productivity improvements we’ve already achieved in network delivery operations and supports the further development of customer services.
"Nightfreight’s two-man Deliver2home service is now a market leader in B2C delivery services. This shared user operation has 90 per cent of UK post codes covered every day with further service enhancements currently underway
"Importantly, we now provide a fully transparent customer service offering full track and trace with SMS texting en route, dedicated customer web portals and narrower more certain delivery windows on behalf of major blue chip retailers."
The group’s commitment to customer care has also seen continued investment in staff training.
Mr Horsfall added: "We are satisfied with our latest financial results. Against a challenging economic climate, we remain focused on delivering quality service and providing greater value for customers and we look to the future with confidence."
Penglais Investments Ltd publishes its financial statements for the year ended 30 November 2009 this week (w/c 4 October 2010)