Logistics Resourcing Group PPF Group announce 10% growth in 2013
Logistics Resourcing Group PPF, whose operating brands include ADR Network and the LGV Training Network, has released its annual results.
Turnover for 2013 increased, by 10%, to £98m.
During the year PPF invested heavily in contract fulfillment ensuring operational effectiveness. There are major structural challenges in the UK driver resourcing market posed by a limited pool of drivers and a regional mismatch between demand and supply. These structural imbalances resulted in PPF offering driver incentive payments and a complex relocation project which hit underlying profit margins.
Despite these challenges PPF was able to achieve £3m profit before tax largely as a result of good direct cost control.
The company decided to increase the net asset value from £1.5m to £2m, which will be maintained going forward.
During 2013 ADR Network commenced supply to new large-scale operations in Avonmouth and Castlewood. In the latter part of 2013, new offices were opened in Lutterworth, Stoke on Trent and another office in Northampton. The number of operational staff was increased by 16 to 100.
The LGV training business ‘LGV Training Network’ had a modest throughput of 50 drivers, who were upgrading their licence or attending a refresher course. Despite the modest throughput, this business is seen to be of strategic importance given the under-supply of LGV drivers in the UK. All successful trainees are offered a full time role with ADR Network subject to a successful customer assessment.
Commenting on the results PPF MD Andrew Waldron said, “This is an excellent set of results given the structural issues in the market. Our performance has cemented our position as being the UK’s largest supplier of temporary LGV drivers. Going forward there are substantial challenges.
We anticipate an intensifying of the problems caused by a mismatch between supply and demand that will be intensified in the coming year by the economic recovery, driver CPC regulations and retiring drivers. This combined with continued investment in our LGV training business, which is not anticipated to start returning a profit until quarter 4, has resulted in us forecasting a reduction in both turnover and profitability in the coming year. As such whilst we are targeting one new major client we see 2014 as being a year of financial consolidation with a continued emphasis on the supply end of drivers to our business.