Nightfreight positive for 2009 despite profit dip (UK)
Pre-tax profit fell to £785,978 from £4.3m for the year to 30 November 2007, on turnover up 4% to £137.5m.
Although the results have not yet been released by Companies House, Nightfreight chairman Robbie Burns tells MT that the results reflect the difficulties the firm faced last year.
Burns reveals that Nightfreight’s majority shareholder, RBS, wrote off half of the firm’s £72m debt in a debt-for-equity swap. “We also wrote off £30m of goodwill as part of that refinancing,” adds Burns.
Moving on to this year, Burns reveals that the first half of 2008 has been solid. “I’m expecting us to deliver around £2.5m profit by the end of 2008,” he says. He adds that volumes are down this year, “but only by a single digit”. “The industry average is 20% down. We haven’t been hit as hard as others because we have this middle ground where we offer IDW (irregular dimension and weight) freight,” says Burns.
He believes Nightfreight is in fighting shape for 2009. “We’ve restructured the business, the balance sheet is in a sensible position and we’re ready to face the economic storm. “I don’t expect us to significantly enhance profit next year – it will be about getting through the next 12 months. The biggest challenge during these difficult times is a cost/service balance.”
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