Wyvern escalates turnover and profit

Poole, Dorset-based haulier Wyvern Cargo more than doubled pre-tax profits in the last financial year, partly by requiring its customers to absorb fuel price increases. Wyvern has a monthly fuel price escalator written into all contracts because the price of diesel is rising so fast.

Turnover increased from £11.9m in 2006 to £13.5m in the year to 31 March 2007, but pre-tax profit remains at less than 2% of turnover - although profit doubled, it still only reached £231,266.

Director John Probert says: "Whenever we enter into an annual review with a customer we always make it clear that we cannot absorb the increased costs of fuel. Most customers understand because they realise that profit margins in this industry are minuscule. It is a constant battle to get margins up."

Probert adds that one of the main developments at Wyvern in the last year was to develop its document and archiving storage, a niche market in which it has become a specialist.