Kinaxia Subsidiaries Slip Into The Red In 2023

Source: Tiger Trailers.

Nine of Kinaxia’s 12 subsidiaries fell into the red in 2023, writes Carol Millett.

Another two saw their pre-tax profits tumble and only one – NC Cammack – managed to boost its profit, according to annual results published on Companies House on 31 January.

Meanwhile parent company Kinaxia Limited has yet to publish its results, which were due by 31 December 2024, according to Companies House.

Kinaxia Logistics and Fulfilment made the largest pre-tax loss, down from a pre-tax profit of £1.2m in the previous year, to a loss of £866,320.

The company put this down to a decrease in the gross profit margin, from 49.7% in 2022 to 17.3% in 2023, which it attributed to the increased cost of sales and operational pressures in the logistics sector.

Foulger reported a similar pre-tax loss of £863,000, compared to a pre-tax profit of £362,000 the year before.

Meanwhile David Hathaway Transport also fell into the red during the year, down from a pre-tax profit of £202,000 to a loss of £589,000; AKW Global Logistics reported a pre-tax loss of £91,000, down from a pre-tax profit of £466,000 in the prior year; and Lambert went from a pre-tax profit of £220,000 in the previous year to a loss of £228,000.

Other Kinaxia companies that fell into the red during the year are Bay Freight, which saw a £71,000 pre-tax profit become a loss of £345,000; AJ Maiden, which tumbled from a profit of £156,000 in 2022 to a loss of £251,000; William Kirk which reported a loss of £198,000 (2022: +£95,000) and Mark Thompson Transport which revealed a pre-tax loss of £216,000 (2022: £44,325).

The only subsidiaries remaining in profit are Panic Transport (Contracts), which saw its pre-tax profit tumble from £304,353 to £27,000; Fresh Freight, which also saw pre-tax profit decline to £63,000 (2022: £135,000); and NC Cammack, which became the only Kinaxia subsidiary to increase its pre-tax profit during the year, to £930,000 (2022: £638,000).

The publication of the annual results of the 12 Kinaxia subsidiaries closely follows a change of ownership of Kinaxia and the end of last year. Founders Peter Fields and Neil Ashworth are no longer the major shareholders. This is now Dr David Shaw, a US citizen based in New York who has, since December, held the majority shareholding – although this is less than 75%, according to Companies House.

As a result of the change in ownership the company has seen a management restructuring, which was announced earlier this month by Kinaxia.

Gareth Jenkins has replaced Graham Norfolk, who had been a director with the company since 2015 and Allan Blakeley has been appointed COO. Kinaxia said he had more than 30 years’ experience in UK and European logistics and e-commerce fulfilment.

Meanwhile Simon Nelson has been promoted from COO to the new post of MD of contract logistics, with a brief to develop and expand Kinaxia’s key customer base and contract logistics services.

Commenting on the 2023 results, chief financial officer Ben Warrillow said: “Like most logistics businesses, our financial performance during the period was impacted by market challenges around freight volumes and an increased cost base.

“However, most of the losses posted were due to impairment charges and non-cash items and, in reality, the business is operationally robust and has the financial stability to underpin future growth.

“Kinaxia has made many changes since then, most notably around its senior team and the investment in key areas of the business, including operational efficiency, technology and sustainability.”

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