- 13 October 2016
- Transport / Logistics Services
UK based international logistics company Europa Worldwide Group has reported that the company has seen a return to profitability in 2016 and now expects strong growth in 2017 after a ‘challenging but robust’ performance over the past financial year.
In a statement from the company, Europa’s Managing Director Andrew Baxter has said that this has come about after a significant restructuring of the business. This has put some ‘bumps in the road’ though Europa now has a “solid platform for significant improvement in efficiencies, profitability and growth in the coming years”.
Costs of restructuring in 2015 were £1.6 million and the total cost of the 2014-15 restructuring programme was £2.5 million.
Baxter said: “Overall, the financial picture is a healthy one but, at times, it has been painful. We have not shied away from implementing some major restructuring projects, the last of which was changing our operational IT systems this summer. All of this change has a short term negative impact on the bottom line, but it’s a game changer for the business and has created an environment for growth. Added to that, for the first time in Europa’s 50-year history, turnover will break through the £100 million mark in the final quarter of 2016 which is a great milestone for us.”
In 2015, Europa made its biggest single investment in a £30 million construction of its new 26,368 square metre logistics facility in Dartford, which was the UK’s largest European groupage hub. To manage the investment the company needed to rationalise other aspects of its business, including moving its entire Erith operation into the new 1hub. It also closed its Birmingham hub, though the Minworth branch remains fully operational. These major moves helped improve efficiencies and cut costs.
This year, Europa Worldwide has reported a 14% year on year increase in turnover in 2015 to £96.5 million. Operating losses were £0.9 million. Baxter put this down to the restructuring programme. The company expects a pre tax profit in the current financial year in the region of £1.2 million on a turnover rising to £110 million. By 2017 this should reach £130 million and a profit in the region of £3m.
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