Irvine based Maxi Group Limited and its main trading divisions in Haulage, Warehousing, Construction, and Property Development have published their September 2008 results.
Group turnover increased by 15.5% to £44.7 million and pre-tax profits rose slightly to £3.2 million, being split £1.2m to Haulage and Warehousing, £0.3m to Construction and Property rentals, interests and gains on sale accounted for a further £1.7m.
Despite the extremely difficult trading conditions in logistics, with significant fuel increases, shipping costs and general inflation, coupled with ever increasing price pressure, Maxi Haulage Ltd results were improved. This was primarily due to the continuing drive for cost reduction and improved efficiency, coupled with customer retention and achieving new sales to replace drops in demand and add to turnover.
MD Alan Miles and his team have demonstrated great skill and tenacity in succeeding in the most difficult trading conditions achieving the highest level of customer service whilst remaining competitive in the tightest of markets.
They also maintained a modern fleet and improved IT, and despite tighter margins have continued to expand. Whilst fuel costs have reduced, these have been passed on to customers. A strong balance sheet and substantial financial reserves puts Maxi Haulage in a position to expand and develop the business as the market recovers.
The construction division has been adversely affected by the economic downturn in the industry. This has reduced the workload and tightened margins, which has continued into the following period leading to a drop in turnover and corresponding effect on results. However recent new contract awards are very encouraging and we are now on an upward trend.
Maxi Construction Ltd MD John Aitchison and his team are following a strict policy not to take on any uneconomic work so as not to create any longer term problems. Significant efforts are being concentrated on identifying suitable new sales opportunities with excellent results. We believe that our approach will allow a faster recovery and, with a strong balance sheet and financial reserves, they are in a unique position to expand into an improving market.
Property development is languishing due to the collapse of demand in most areas; however, any opportunities that may arise will be taken advantage of.
A project to refurbish and extend Elliott House in Irvine has commenced and will be completed by late 2009, providing high quality office space in some 18,000 sq feet split into units ranging from 300 square feet up to 12,000 square feet. These are located near the bypass, bus services and within 1.5 miles of both Irvine and Kilwinning centres. With ample parking and woodland setting these should be a very popular choice for those requiring new offices in the area. The adjacent 65 Acres site has great potential for residential, commercial and retail development which is also being actively progressed.
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Issued by Gerry Atkinson Maxi Group Chairman who, along with family trust, owns the Group. He can be contacted by phone 01294 272531, PA Josephine McNulty, or by e-mail gerryatkinson@maxigroup.co.uk and will be pleased to answer questions or supply additional information.
Copies of the Maxi Group Limited September 2008 Accounts, or any subsidiary Company, are available on request.
