TPN close to share offer
The Pallet Network is set to open up its share holding to network member companies. Chairman Richard Eldred is canvassing views among 70-strong network membership and from firms that are considering joining.
The member-owned model is seen to have worked well at Palletline and at PalletForce. Indeed, PalletForce is setting the pace among the middle-ranking pallet networks. And some TPN members of the APC parcels firm.
TPN is moving 3,500 to 4,000 pallets a night but needs significant growth if it is to make use of a massive new hub, to which it moved in January, and to stay within sight of the industry’s major companies.
TPN was hitting its capacity limits at the old hub and unable to take on new members.
Eldred says that network membership is exceptionally stable. But he is keen to add new companies, including some large, well-known firms- provided that the culture is compatible with that of TPN, where there are quality operators but no “stars”.
And he warns that “we need to be a little bit more demanding of our network members.”
Meanwhile, TPN has just finished consulting with members on the introduction of “quarter pallet” rates.
Managing director Alan Leonard says there is a clear majority in favour of quarter pallets, provided that the payment structure gets the right balance between sales and delivery payments. There was little division of views between net in-putters and net deliveries.
TPN’s unaudited financial results for the year ended march 31, 2005 show an increase in turnover up by 28% to £20.3m.
Pre-tax profit before a one-off item rose by 31% to £903,000; and the exceptional item cost for 2004/5 was 66,100, the sum written off to aborted relocation costs. In 2003/4, £66,800 was written off to a heath and safety fine and costs.
Chairman Richard Eldred stressed that 2004/5 was an unusually profitable year. The current year will reflect hub and other investment costs, he said.
