Sea freight firm profit up 20%

Aug 27 2008 by Tony McDonough, Liverpool Daily Post

A SEA freight operator with a major base at the Port of Liverpool is reporting a 20% rise in pre-tax profits for 2007.

The RH Group, which has a branch at Atlantic Terminal, has shaken off pressure from the high cost of fuel and slower economic growth.

The UK’s largest European freight operator has reported a pre tax profit of £3.57m for the year to December 31.

Earnings before interest and tax were £4.5m, up 18% from £3.8m last time. Turnover was £122.3m, up 3% from the previous year.

Ian Baxter, RH’s managing director, said: “2007 was another solid year for RH despite a challenging market.

“After 32% turnover growth in 2006 we turned our focus to growing our bottom line in an environment of sharply rising operational costs.

“The outcome was a 20% growth in pre tax profit.”

In 2007 the company completed the installation of a bespoke integrated IT system which is part of its long term strategy to improve customer service.

Mr Baxter added: “As RH is privately owned we have the independence to invest in the business today to gain a competitive edge and ensure the success of the company for decades to come.

“This year we have faced the triple challenge of a slowing economy, rocketing fuel costs and a sharp decline in sterling against the euro.

“This has increased the cost of European transport by more than 20%. Nevertheless, our results for the first half of 2008 are ahead of budget and ahead of last year. We must be one of the few success stories in our sector at the moment. ”

RH delivers daily to 18 European cities and employs 700 staff. Last year it delivered over 400,000 consignments across Europe for its customers.

RH UK offers 56 daily double-manned services to, and from, all major European cities including Barcelona, Basel, Belfast, Dublin, Ense, Frankfurt, Fulda, Genk, Gottingen, Hanover, Kolding, Lyon, Milan, Stuttgart and Wroclaw.

tonymcdonough