Fowler Welch-Coolchain (FWC) posted a 2% slip in turnover in the six months to 30 September to £57.2m, but has continued to invest heavily. The small downturn is attributed to the loss of two accounts with Somerfield and Lacktalis Nestlé (worth around £10m in total), which impacted (undeclared) operating margins, according to Philip Meeson, chairman of parent company Dart Group.
However, the loss of those two contracts has been more than compensated for by new business wins, principally supplying transport and warehousing services to Tulip and the addition of store deliveries on behalf of Tesco from FWC's Washington, Tyne and Wear DC.
Further enhancements are due at the DC to accommodate as-yet-unannounced new business. A new warehouse management system at the Spalding, Lincs site is "delivering operational efficiencies", says Meeson. FWC MD David Inglis says the system is generating positive feedback and is being aggressively rolled out across the firm's other sites.
In August, FWC acquired 10 acres of additional land adjacent to the Spalding site, offering a 50% increase for future expansion.
FWC has eight double-deck trailers and has plans to take another at least another four. Meeson also highlighted the continued investment in driver training, resulting in an unspecified improvement to year-on-year fuel efficiency.
