- 19 October 2015
- Transport / Logistics Services
UK distribution company Connect Group saw higher turnover this financial year after buying parcel freight business Tuffnells. Though profits were down, revenues increased significantly due to Tuffnells input, and this has resulted in Connect increasing its dividends to shareholders.
Adjusted profit before tax increased by £6.5 million year on year to £56.5 million which was largely due to the purchase of the freight parcels division. Revenues increased by nearly 4% to £1.88bn, leading the company to increase dividends by 5% per share.
Mark Cashmore, Group Chief Executive said of the financial results, “Profits were ahead of expectations and we have made significant progress towards our medium-term strategic goals.”
Connect Group bought Tuffnells in November 2014 for £113.4 million. The Swindon based parcel company had 930 vans delivering 10 million deliveries a year from 34 depots across the UK. The purchase of the company seems to have been a good move for Connect, as can be seen in their revenue figures.