Back in the black; Amtrak set to buy
Amtrak Express Parcels is set to go on the acquisition trail after returning to profitability in 2004. Its pre-tax profit was (pounds sterling)1.9m against a loss of (pounds sterling)5.5m in 2003. Iain MacRitchie, non-executive chairman, says: “This is an excellent result which has come much earlier than we had anticipated. The performance, competitive advantages and strength of our balance sheet have now provided a strong foundation on which to accelerate and we can now actively participate in the required consolidations of the parcel sector.” The firm, which is 68% owned by 3i, achieved a 4% growth in turnover to (pounds sterling)70m and achieved a (pounds sterling)6m operating profit. Revenue rose 4% to (pounds sterling)69.7m – its highest level in four years. It also revealed it had cut costs by 25% after restructuring its operation in 2002. MD Jonathan Smith says: “This has been a great year for the business and the results are justification for the difficult decisions that had to be made in 2002. We have returned to profitability and this trend looks set to continue. We have reduced our net debt position by 30%, while investing heavily in the future of the business with a capital spend of (pounds sterling)1.2m in this year alone.” Amtrak says it has been successful in building a strong reputation in home deliveries. In the past year it has secured contracts with Laura Ashley, Simply Computers, Virgin Wines and Comet. The firm has also invested heavily in IT including a wireless barcode scanning system which has helped reduce overheads and improved service levels, it says.
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