A Stoke-on-Trent logistics company has reported a rise in turnover and profits, while continuing to invest heavily in its fleet and operations.
Browns Distribution saw turnover increase by 5.93 per cent to £23.49 million for the year ending 30 April 2025, while profits before tax rose to £1.023m from £812,000 the previous year.
According to the family-run firm, the growth was driven by higher sales and an improved gross margin, which rose to 21.77 per cent.
During the year, Browns invested more than £2.5 million in new vehicles and trailers as part of a fleet renewal programme. Staffing levels also saw a slight increase, building on senior management appointments made in the previous period, with direct labour costs standing at 19.4 per cent of turnover for the year.
However, in its annual report the company highlighted ongoing concerns over HGV driver availability, retention and pay rates, acknowledging wider economic pressures including inflation and high interest rates.
The report said: “Inflationary pressures are still a concern to all businesses, with inflation in the UK increasing again to double the Bank of England target levels in April 2025, leaving a high costs base. Government support in these areas will be needed to allow businesses to remain competitive in a challenging world economy.”
The directors said the company is committed to improving efficiency and profitability through continued investment in vehicles, technology and staff training.
Looking ahead, Browns said activity levels for its distribution and warehousing services remain strong.
The report added: “The directors continue to develop the business based on its core strengths and actively seek new profitable growth opportunities in an increasingly competitive market. They currently expect a reasonable increase in the level of turnover during the current financial year.”
