Logistics group Lloyd Fraser Holdings saw its turnover tumble 30% in 2010 as it felt the pain from the loss of two major deals, but a slew of new wins since has improved the outlook for the business.
The Rugby-based firm saw turnover fall to £50.2m (2009: £69.7m) in the year ended 31 August 2010, according to newly published accounts at Companies House, as the full impact of Travis Perkins' decision to take distribution for its Wickes business in-house hit home. The collapse of the Dairy Farmers of Britain co-operative, a long-term customer, reduced turnover further.
However, the transfer of staff to Wickes under TUPE regulations nearly halved headcount to 631, and with the cost of sales significantly reduced, operating profit almost doubled to £1m (2009: £544,584). It saw pre-tax profit recover to 2008 levels, up 46% to £981,429 (2009: £674,210).
Speaking to Roadtransport.com Mike Dennis, marketing manager at Lloyd Fraser, revealed the firm had landed a £30m multi-year deal with one unnamed fashion retailer, and a second contract with another since the start of this calendar year.
In February Lloyd Fraser revealed it had won a five-year contract to collect and distribute fresh milk for Milk Link and Dennis said the headline figures masked growth in the firm's retail and milk interests. "Today we have a broader customer base than before with our fashion business, which we set up in 2008, growing fast. We also work with a lot of the dairy farmers that were in the co-operative as well as many others such as Arla and First Milk."
