Haulage and warehousing outfit Elddis Transport says the acquisition of a new Consett base and the closure of its Durham depot last year was a "sound strategy" that positively impacted its performance.
The long standing, family-run firm said the decision to close its Old Pit Lane, Durham site, which it had operated for 44 years, and immediately reinvest in revamping the former GT Engineering base in Consett had strengthened its position. In accounts for 2021, the 51-year-old business, reported a £143,000 rise in operating profit to £860,000, from turnover of £28.7m.
Work on the Consett site created a new storage and distribution space, to secure additional onsite capacity for its warehouse operations. Elddis also pointed to investment at its Newton Aycliffe base, acquired in 2020, which has provided a permanent new commercial HGV and trailer park on land off Jowett Way, which offers access to local transport hubs and the main A1M.
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In a report accompanying the accounts, Elddis managing director Nigel Cook noted some challenges the firm faced. He wrote: "The directors are pleased to report another solid financial performance for the year, despite what have remained unprecedented economic times, brought about principally by the global pandemic. The impact of the Covid-19 pandemic continued throughout the year, which necessitated the business having to perpetually appraise customer demand, supplier availability and resource utilisation.
"That headline turnover and underlying trading profit margin have remained largely consistent year-on-year is in part a reflection of the flexibility demonstrated throughout the company during the year. The much-publicised shortages of HGV driving Labour provided a further layer of challenge throughout the year, and one which resulted in our fundamentally reviewing and updating the structure in which a large percentage of the workforce was paid.
"These changes brought about a level of staffing stability towards the end of 2021 and into 2022, which was not the case early in the year. Warehousing business across our depot network, most notably at the Gaston site, evidenced significant revenue growth in the period, both in terms of pallet storage and added value service provision, with the introduction of several new customers in the year."
During the year, Elddis said it invested in its vehicle and trailer fleet along with a new payroll and HR IT system that provided two-way communication with its 321 staff. And in celebration of the firm's 50th anniversary, it commissioned a one-off cab and two trailers painted in the original Elddis livery from 1971. One driver, Andy Mitchell, retired having worked for the business 50 years, since its inception.
Speaking to Business Live following publication of the results, Mr Cook said wage inflation across the haulage industry had encouraged more younger people to consider careers as drivers. Elddis has recently doubled the number of drivers it is putting through tests in response to the shortage of skills.
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