Basingstoke: RH Group reports increased turnover
The RH Group, which has a branch on Stag Oak Lane in Basingstoke, has announced another consistent year despite the pressures facing the freight industry and the economy as a whole.
The UK’s largest European freight operator has reported a pre-tax profit of £3.51m (Eur 4.09m) for the year to 31 December 2008. This is down by 1.6% on the previous year. Earnings before interest and tax were down to £4.35m from £4.46m last time. However turnover was up 5.5% to £129.07m (Eur 150.6m).
Ian Baxter, RH’s Managing Director, said: “Given that we noticed a slowing of business in the second half of last year the fact that our results ended broadly similar year on year is a good achievement.
“In the first half of 2009 we implemented a long term strategic plan to consolidate our freight planning function and we have also rationalised our trucking capacity by reducing our commitments with overseas subcontractors. Whilst our profits for the first half of 2009 will be modest, we now expect full year results to be close to those of 2008. If this is accomplished this will be a very good performance given that the total market for European transport is down by around 20% year on year. RH’s own consignment volumes are down only 4% year on year.
“As a result of efficiency gains and a lower cost base, our business model is now more profitable on a day to day basis than ever before. Our business plan is based on our current revenues and costs and thus does not depend on an economic recovery - because the timing of any such recovery is extremely uncertain.
“As a consequence of our robust business plan we are now looking again at capital investment. In the short term we are buying 60 new trailers and at the same time we are starting working on a project for a new Southern hub. Whilst 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. In 2011 when our new hub is planned to open, London will be getting ready for the Olympic Games and the logistics market will receive a great boost. We believe this will give our new facility a flying start.
“We are absolutely determined to provide a very high level of service for a reasonable price across our business and I am very confident we can prosper in the face of even these tough economic conditions.”
