Palletline to invest £6 million to expand its business
UK palletised freight distribution network Palletline is set to embark on an ambitious programme of investment.
The announcement follows the company’s successful performance in 2021 which saw a 19.4% increase in turnover and a new milestone of five million pallets per year.
However, Palletline recognises that the challenges ahead within the UK economy coupled with global influences will further impact the ever-changing market landscape.
In order to mitigate this and ensure sustainability, it was crucial they had the right platform and structure in place to facilitate continued expansion and drive the business forward.
A detailed evaluation of the market undertaken by the company has clearly demonstrated that the shareholder model, which has always been the very bedrock of the Palletline success story, continues to be the best option to drive growth and ensure investment in the current economic climate.
As such the company is now in a strong position to invest in property, its network, new technologies and service.
The next two years will see an investment of more than £6m across the business, making it one of the most significant financing programmes the company has embarked upon in its 30-year history.
New developments will incorporate investment in property and infrastructure including the expansion of Palletline’s Coventry and Birmingham sites as well as the announcement of a new five-year contract with Linde which will see a new fleet of forklift trucks being introduced across the business, ten of which will be electric.
Technological innovation too will feature highly including the development of its next-generation IT platform and the delivery of a seven-figure project to implement cutting-edge CCTV technology on its forklift trucks to further increase visibility and accountability.
Palletline’s Group Managing Director Graham Leitch is confident about the future and sees these latest investment plans as marking a new era for the business.
He commented: “Palletline was the first network to be established in the UK and we are incredibly proud that we continue to boast a market leading model which has stood us in good stead over the past 30 years.
“Palletline continues to be the only network owned and controlled by its members and, as such, are seen as the network of choice for regional logistics companies who want to enjoy this and other benefits.
“Over the past twelve months we have enjoyed unprecedented success however we are not complacent and now have our sights set on further developing the business to create an even more robust offering and ensure sustainability for the future.
“Our logistics business too has continued to perform well and now has a total of nine businesses under its umbrella, which collectively have grown by 43% to achieve a £50 million turnover between them employing 450 people across the UK.
“We have an exciting journey ahead and will ensure we continue to exercise strong financial controls for the benefit of our members going forward.”