Bibby Distribution has reported a sharp increase in 2009 pre-tax profits over its impressive 2008 figures. Turnover was recorded at £185.1m with profits up to £5.8m.
The company's latest financial results, which cover the period 1 January - 31 Dec 2009, show a 21.8 per cent growth in profit before tax (PBT) despite a very challenging trading environment. There was a marginal slip in turnover on a like-for-like basis of around six per cent, reflecting the general state of the economy in recession. Free cash flow (earnings before interest, tax, deprivation and amortisation EBITDA) was also at a record level with an annual increase of 12% and the company is now virtually debt-free.
Chief Executive Iain Speak believes Bibby Distribution has outperformed the market and exceeded its growth targets through a combination of new initiatives aimed at managing costs, producing efficiencies and delivering outstanding customer service across the business.
He says: "We have made significant investment in our infrastructure and people, enabling us to continue to deliver real value to our customers. Over half of our business is now founded on customer relationships of 10 years or more.
"Project Accelerate, a company-wide initiative to embed our strong values and beliefs into the business, has really started to make a positive impact. It's about the way we approach our customers and go about our business in a very practical manner. It's not about mission statements and posters, but customer service, continuous improvement and simple but very real values such as integrity and respect."
To date over 100 continuous improvement projects are being carried out, driven by our colleagues working at all levels. Most of the projects are around everyday processes and tasks that can be improved through focus and commitment.
Iain says: "By bringing the credit control function to the heart of the business, implementing new systems to give us better management information and optimising our processes, we have never been better equipped to cope with whatever conditions the marketplace can throw at us.
"As a privately owned business, we can also be far more flexible in our approach, which means we can react quickly to change and plan for the long term in the joint interests of our customers and ourselves."
The stability and reputation of the company has led to several new contract awards in growth sectors for Bibby Distribution, including a new agreement to provide additional dairy collection and distribution services for long-standing customer First Milk. Although the results of this contract and other recent new business wins do not have an impact on 2009 figures, they represent a strong start to the 2010 financial year.
The company has said the recent acquisition of Taygroup is likely to be followed by further acquisitions during 2010, of other companies that share similar values and focus on customer service excellence.