TPN delivers healthy profits
The Midlands-based Pallet Network has loaded a substantial increase in both turnover and profits for the year to March 31.
Turnover grew from pounds 15.8 million to pounds 20.3 million, an increase of 28 per cent, with pretax profit topping pounds 804,000 as against just over pounds 625,000 the previous year – a jump of just over 28 per cent.
TPN bosses pinpointed significantly increased pallet throughput as a direct result of consistent delivery performance and service quality.
Hailing an ‘excellent year’, Richard Eldred, TPN chairman, said: ‘Average nightly pallet throughput grew by more than 26 per cent a quarter from 2,670 to 3,375 pallets per night during 2004/05, with turnover and profit both highlighting this increase. Increasing pallet traffic was the key factor in our decision to relocate to our new 224,000 sq ft hub near Rugby at the start of 2005, representing an investment of around pounds 6 million over five years.
‘While this is a significant investment for a company of our size and age, it was necessary as we had reached full capacity at our Leicestershire hub and a larger new central hub was vital to accommodate both existing demand and the anticipated increase in pallet throughput in the longer term.
‘The new hub costs, as well as other capital investments including a major investment in new fleet of forklift trucks, will of course have an influence on our current year’s figures, but with further increases in hub traffic, we are still confident of a very solid year of trade for 2005/06.’
Mr Eldred added: ‘At a time when a number of networks have begun to see the growth curve of their previous annual figures begin to plateau, it is refreshing that TPN with one of the most stable memberships in the industry, is bucking the trend and enjoying record financial figures.
‘It is credit to both our hub staff and of course our 70-plus members across the UK, whose commitment to service and quality continues to attract new customers.
‘We believe we offer our members a different more democratic style to other networks.
We are not in the business of sliding volume for the sake of volume
