DT Christmas Newsletter 2025

Financial summary: A year of two tales FINANCIAL NEWS

Group Financial Director, Stephen King, provides his annual summary of the company’s financial performance and other accounting matters

T here are two tales to tell this year – another great set of financial results, and the challenge

A year of two halves It was a year of two halves for our logistics business. We know there is a different sell for the logistics business. It is generally a much longer period to convert a sales opportunity into revenue in the P&L and the first half of the year was laying the groundwork for the second half. New business at Atherstone and Bristol CP1 helped deliver a fantastic 2nd half of the year results, and a very good full year position. Change to the finance system was a massive undertaking, with significant challenges. Whilst ultimately successful, it did not proceed without disruption. We continued to pay our suppliers and collect cash from our customers, which was always the priority. However, there was a big change to how operations teams viewed job schedule and sales ledger information, and there were issues along the way that have now been mostly resolved. Thank you for your patience as we have worked through this challenging project, and especially thank you to the finance & IT teams who have been at the heart of the project. Financial priorities As we move towards the end of the current financial year our financial priorities remain our desire to continue to achieve our profitability targets, collect the cash owed by our customers, and manage our cost base in these challenging times. Both national and global events make this an ever more difficult challenge. Thank you for your own contribution towards the success of the business, despite the adversity faced from both internal and external factors; and continuing to be part of the ongoing development of Davies Turner. On 1 June we started using a new finance system, Microsoft Dynamics. Separating the finance modules, which were fully integrated with the main AS400 operating system,

of changing finance systems. In respect of the company’s financial performance, it was another year showing a strong financial performance in the latest published accounts for the Davies Turner group. The accounts for the year ended 31 March 2025 show turnover of £264 million, a 24 percent increase over the previous financial year, and revenue of £79

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million, an eight percent increase, whilst retaining a strong balance sheet which allows the group to continue to invest in the development of the business. Revenue ahead of budget In both the surface freight and air freight businesses the revenue performance was far in excess of the budgeted amount for the year. Whilst we do budget on a conservative basis – what we know at the time rather than trying to predict the many variables of the freight industry – to end the year 80% ahead of budget profit is a phenomenal performance by you all. The last five years have shown how the volatility in rates and volumes impact our Profit & Loss (P&L), with turnover ranging from £200 million to £350 million during that time.

Our financial priorities remain our desire to continue to achieve our profitability targets, collect the cash owed by our customers, and manage our cost base

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This year has also seen volatility in rates, although this has been less dramatic than prior years. The higher ocean freight volumes along with high rates at the start of the financial year has resulted in an improved performance, and the trailer business also benefitted from significant growth from our largest customer, ASOS.

Davies Turner - Central Park, Bristol

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