Premier Logistics (UK) returns to profit after financial restructure

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Latest figures show that Premier Logistics (UK) increased turnover by 2% to £10.2m as the haulier battled its way out of its Company Voluntary Arrangement (CVA).

For the year ending 31 October 2019, the company also returned to the black, with a pre-tax profit of £2.3m, compared with a loss of £2m in the 10 months to 31 October 2018.

It said profits were boosted by an exceptional item of £1.85m in respect of the write back following its early settlement of the CVA it entered into during July 2018.

The company was forced to restructure its finances via a CVA in the face of a £5.7m shortfall to creditors.

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A revision to the original terms would have meant it making monthly contributions over five years.

However, Premier Logistics said this term was later reduced as part of a settlement accepted by creditors and HMRC and the CVA ended last month, thanks to it concentrating on core services, stripping back its assets and focusing on a core group of customers.

In its review of the business, the company said: “To date, all the company’s CVA obligations have been met and as part of the terms of ending the CVA an additional sum of £500,000 was paid in January 2020 to enable the supervisors to distribute a final dividend to the creditors in full and final settlement of all outstanding liabilities.”

Earlier this month, Premier MD Lee Christopher said the company had been “at a huge disadvantage in the marketplace” while trading through the CVA and that many in the industry had written it off.

The post Premier Logistics (UK) returns to profit after financial restructure appeared first on Motor Transport.

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