Palletways grabs at Europe

By David Craik and Sarah Dennis

Palletways has confirmed it will see its strongest growth in Europe in the forthcoming year, but is quick to point out that UK growth is not slowing.

Chief executive James Wilson tells Motor Transport that growth in the UK in its past financial year has remained the same as the previous year but is improving. "In fact, our growth in the past six months has been higher than the previous six months," he says, forecasting continued growth for next year.

Wilson adds that Palletways is poised to open a new facility for its Stargate Logistics operation in Edinburgh in the summer.

The pallet network reveals it is continuing to expand its international operations. "Investments continue on continental Europe, in new countries and new products," Wilson says. Palletways is currently focused on linking its domestic networks in the UK, Italy and Spain and what it calls its "zonal" network for central Europe covering, among others, Denmark, Germany and the Benelux region. Latest results reveal a 28% growth in turnover to £91.4m for the year to May 31 2006. Pre-tax profit leapt 26% to £3.2m for the year, compared with £2.6m in 2005. Operating profit moved to £3m from £2.4m the previous year.

Group finance director Susan Hundleby comments: "The main difference between [2006 and 2005] is that our underlying business is obviously growing. We're able to make significant investments year on year but we're obviously maintaining profit levels."

Wilson adds: "We're delighted with the trading results."

Palletways had debtors of £15.1m in 2006, compared with £9.5m in 2005. Creditor amounts due within a year were £13.8m, compared with £5.9m in 2005.

The network has 106 members in the UK, with a total of "just under 250" including members across Europe, and nine sortation hubs across its entire business. "I'm sure this time next year we'll have more than 300 members," Wilson states.