The owners of North East haulage and warehousing firm Fergusons Transport have hailed the company’s performance after coming through the challenges of Covid-19.
The family firm, which was launched in 1926, is the largest privately-owned haulier in the North East while also working in warehousing, logistics, removals and self-storage.
Now the Cramlington company – one of several in the region owned and operated by the Ferguson family, which recently opened the Ad Gefrin whisky distillery in Wooler – has published accounts for the year ended September 2022, showing a jump in turnover from £20.8m to £24.5m. Operating profit rose from £371,244 to £583,829 and the overall profit for the year rose significantly, from £21,322 to £622,904.
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The Northumberland Business Park West-based business, which has depots across the country, said it regarded the results as “very satisfactory” following a challenging two years. In a review of the business within the accounts, director Alan Ferguson highlighted how supply chain issues continue to plague some of the firm’s clients.
He said: “The trading year saw the development of our customers’ businesses, including our own, following the years badly impacted by coronavirus. Whilst this showed an improvement on those years, activity has not returned for many businesses to those achieved pre-pandemic. This has largely been because the supply chain that so many heavily rely upon has not yet returned to those levels.
“Notwithstanding those issues, both of our main activities have been affected and show an improvement over the previous year. This is regarded as a very satisfactory result after a very challenging two years which had an impact on our achievements in those years. These results also reflect the benefits of the exceptional work of all of our employees through this difficult period.
“The haulage this year was subject to exceptional wage increases which were required to retain drivers as the much publicised shortage of drivers caused an increase in demand and rates which we were able to match. Coupled with the additional wage cost was a volatile fuel price which also represents a significant additional cost to our business. The additional effect of those two events increased operating cost by circa £2.4m. The additional costs were understood by our loyal customer base who accepted the required rate increases.”
Mr Ferguson said the warehousing gross profit rose 32.2%.
He said: “Warehousing benefitted from the requirement by customers to hold and handle their goods for longer periods as their production capacity built up. This required additional capacity which we were able to make available to satisfy their requirements. The Cramlington workshop has continued to grow, as was expected, and covers all costs providing a valuable service to the company for vehicle and trailer maintenance as well as to a growing number of external customers.”
Looking ahead, he said the company would able to reap the benefits of the Government’s levelling agenda.
He added: “The resurge of the increasing production by our major customers bodes well for the company as the current capacity enables their demands to be met.
“The levelling up agenda adopted by Government in the regions in which we are well represented will enable to company to benefit from providing services to meet the demands which these new businesses will require. The future is looking positive and the company will continue to monitor developments in the growth of ‘green’ vehicles will satisfy the requirements of customers who are striving to meet the lower emission objectives.”
