Gist profits and revenues see strong growth
The annual results for UK logistics company Gist, formerly known as BOC Distribution, have been released by its parent company BOC. Overall the company performed well throughout the year growing its revenues to £291.8m (€426m), an increase of 10% on 2002. Its profitability also improved as operating profits jumped by 13% to £29.2m (€42.6m), an operating margin of just over 10%.
The increase in profitability was partly due to a one off benefit provided by Marks & Spencer’s termination of its general merchandising contract with the company in July. This also resulted in a fall in revenues in the last quarter although Gist continues to provide temperature controlled logistics services to the retailer. It also increased the level of business with brewer Carlsberg-Tetley and UK retailers Budgen and Ocado.
With a large proportion of its revenue generated in the UK consumer and retail sector Gist has managed to avoid the worst excesses of the European recession. Its key contracts with some of the UK’s largest retailers should mean that it will also benefit from the supplier rationalisation which will take place as a result of factory gate pricing.
