Haulage firms 'could be better run by private equity firms'
Date: 17 July 2007
A new study by analyst Plimsoll has suggested that many parts of the UK haulage industry would be better run by private equity firms.
The survey looked at 2,000 hauliers around the UK and found that, collectively, the haulage industry in Britain is wasting £646 million in potential profit each year, RoadTransport.com reports.
In fact, almost three quarters of those companies would be run more profitably if they had different owners, the study suggests.
Problems that need to be addressed by freight forwarders include cutting out unprofitable business, with some firms able to boost profits by cutting down on business levels. As well as this, many haulage firms were found to have unnecessarily high levels of stock, and too much borrowing.
Sales per staff should be at least £100,000, Plimsoll states.
The survey's senior analyst, David Pattison, said: "These results show why the road haulage industry is currently hot with takeover talk and speculation about future ownership.
"It's certainly no surprise that trade buyers and private financiers are taking a close look at the industry - some [firms] in the road haulage industry have huge potential that isn't being realised at the moment. We've heard a lot about private equity firms recently, and this is one industry where they could reap rich rewards."
Earlier this year there was speculation that road haulage company Eddie Stobart could be taken over by French firm Norbert Dentressangle.
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