Palletforce boosts members cashflow after strong financial year

Palletforce is helping its members to improve cashflow after reporting a strong set of results following the move to its new Burton upon Trent hub.

Speaking exclusively to MT ahead of the pallet network's audited results for the 12 months to 31 August 2010 (due out in February), Neil Carpenter, Palletforce commercial and financial director, says: "I can reveal that we had an excellent year, with a 22% rise in revenue.

"We kept costs under control, which helped us to achieve pre-tax profit significantly ahead of expectations."

To reward its members, depots that are usually paid via the central billing systems for deliveries as a net outputter now receive their payment a week earlier. The date coincides with the time payments are received for central billing from depots that are inputters.

"By making these changes, members will receive a vital extra week's worth of cashflow that should assist in fragile economic conditions, and it will give them a business advantage," Carpenter explains.

In addition, the firm has confirmed its intention to freeze hub fees until January 2012, at the same rate since the beginning of 2009.

Members will also share in the pallet network's increased profit via the company's commitment to pay a 50% dividend.

Meanwhile, Palletforce has implemented a pay rise for its employees following a wage freeze last year.

The results come a year after the firm moved to its £30m, 400,000ft2 Burton hub, which was opened by HRH Princess Royal.

CEO Michael Conroy tells MT: "We will continue to go out there and attract quality new members and win new business while retaining, investing and developing our quality reputation.

"Our ambition is to be recognised as the biggest pallet network by 2015."

During the past 12 months, seven new members have joined the network and Palletforce has invested a six-figure sum on a new IT system called Alliance.