Meachers Global Logistics, one of the UK’s leading independent providers of international freight and transport logistics services, has announced a set investment of £1.9 million in new vehicles. After seeing its turnover and profits soaring, the company will be upgrading the fleet with new vehicles.

According to its latest financial results, Meachers has managed to increase its turnover by 55%, to £55.3 million for the year to 31 May 2022, while pre-tax profit rose by a third in the same period. Turnover from the rest of the world accounted for £2.2 million of total turnover, up from £1 million in the previous year.

However, the company admits it is not immune to the current economic climate and mounting pressures, including a looming recession, fuel price rises, rising commercial rents and a shortage of warehousing could all impact on its future profitability. Moreover, in its annual review, it cautioned that some additional revenue over the year was atypical since it was a result of the pandemic, adding that “this is not expected to be repeated in subsequent financial periods”.

The review added that measures taken to protect the company during the pandemic, such as payment holidays on hire purchase and contract maintenance arrangements, the Government’s VAT payment deferral, the furlough scheme and extended credit terms on significant items of expenditure have all now ceased.

For the future, the company aims to continue its investment strategy, which saw over £1.8 million going towards new equipment. This year another £1.9 million will be spent on upgrading the fleet with new vehicles. While directors are confident about the future of the company, the fact that the Bank of England is warning of an imminent recession, “may impact on future profitability”.

It also noted that rising commercial property rents, the short supply of premises and unprecedented fuel costs are also continuing to put pressure on prices, whilst the impact of the Covid-19 pandemic is affecting those parts of the business involved in the travel and hospitality sectors.

Headquartered in Southampton, Meachers Global Logistics operates 150 trucks and 200 trailers, providing national and international freight and transport logistics services, including freight forwarding, supply chain management, UK warehousing, distribution, training, logistics transport and contract management.