DSV UK road arm sees turnover and profit rise

DSV has recorded a 7.5% increase in turnover within its UK road transport division in 2010, to DKK (Danish Kroner) 1.648bn (£174.6m).

The company says its UK arm generated "impressive results" within a "difficult macro-economic environment" characterised by increasing freight volumes and scarce capacity.

Its UK road transport division posted revenues of DKK1.6bn (£188.1m), compared to DKK1.5bn (£174.9m) a year ago. Operating profit also rose from DKK70m (£7.9m) to DKK85m (£9.7m).

DSV's annual report states: "The division transported a larger freight volume in 2010 measured in number of shipments, but the average consignment was smaller and the average price charged per consignment was lower than in 2009."

The gross margin for its UK road transport was 19.1%, down 0.8% on the previous year. This compared with a net gross margin of 19.5%.

The report states: "There was a negative impact on the gross margin of the road division from the high volatility in the European markets where increasing freight volumes and scarce capacity gave rise to increasing haulier prices. Although freight volumes increased in general, the freight rates charged from customers were still fairly low by the end of 2010."

It expects freight volumes to continue rising in 2011 and improvements in gross margin based on the increase in freight rates for customers.

DSV UK was unable to respond.