Jack Richards boosts profits despite 'regulatory climate'

23rd November 2006, Page 12

23rd November 2006

Page 12

Page 12, 23rd November 2006 — Jack Richards boosts profits despite 'regulatory climate'

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The "careful control of costs" is one reason for the Fakenham general haulage firm's healthy financial results. Chris Tindall reports.

NORFOLK FAMILY haulage firm Jack Richards & Son has converted an II% fall in pre-tax profits two years ago into a 25% increase.

For the financial year ending 3l May 2006, pre-tax profits were £566,000 compared with 1.4241,000 in 2005 creating a profit margin of 3%. The Fakenham general haulier also boosted its turnover bv 8% to f16.-1m.

The company says "careful control of costs" also led to a 12% increase in gross profits.

Managing director Peter Brown has been quoted in the trade press as blaming taxation for the drop in profits during 2004/05; he has expressed concern over the number of well known haulage firms going to the wall.

By all accounts his company. which employs 182 people. has bounced back with relatively healthy results. But in the directors' report Brown remains cautious about the market: "We look forward to the future with optimism despite an increasingly regulatory climate with the Working Time Directive. digital tachographs. the need to purchase environmentally friendly vehicles and the continual fluctuation in the cost of diesel."

The directors do not recommend paving a dividend.