Reed Boardall Transport is optimistic about the company's prospects after a higher turnover in its latest results. But pre-tax loss for the North Yorkshire haulage and transport contracting company has grown. Its latest results report a pre-tax loss of £574,217 for the year to March 31, 2006, rising from £357,873 in 2005.
Turnover rose to £25.0m in 2006 from £24.4m in 2005, but the company's gross margin fell to 7% in 2006 from 7.9% in 2005. Gross profit fell to £1.8m in 2006 from £1.9m the year before, and operating loss grew to £598,685 in 2006 from £425,337 in 2005. Loss after tax was £403,699 - an increase on the 2005 figure of £251,986.
The directors blame a "difficult year of trading" on higher costs, particularly fuel. Continuing pressure on margins added to a demanding operating environment, but Reed Boardall is still in a strong financial position and the volume of business continues to grow, they add. "It's been a challenging and difficult year, for the reasons set out in the report. But we're a forward-thinking company and we're always looking at initiatives to improve our profitability," says Keith Boardall, group managing director.
Average staff numbers at the Boroughbridge-based company went up by two to 342 in 2006, while payroll costs nudged up to £8.1m from £7.9m in 2005. Reserves amounted to just under £3m. No dividend payment was recommended for 2006.
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