SME transporter for the UK’s largest online retailer and parcel networks sees record growth
Small business capitalises on huge growth in UK internet shopping and B2B demand for ‘final mile’ transport
Business: Contact Transport
Sector: Transport / logistics
Funding line: £2.85 million
Turnover: £20 million
A Midlands-based transport firm is reporting double-digit growth as consumer demand for online goods rises. Over the past year and a half, Contact Transport, providing transport solutions across the UK and Europe, has grown by over 30%. It is investing in its fleet of trucks and is on course to generate healthy returns for its shareholders.
Founded in 1980, Contact Transport originally began in a Ford Cortina estate car, making small courier-type deliveries for the airlines at Birmingham Airport. The business has now carved out a niche for itself in ‘final mile’ courier solutions for the larger networks, which makes up around 70% of the current business.
After recovering from the 2008 financial crisis, Contact Transport was looking for a funding solution to help them manage their cashflow so that they could plan more effectively and lay the foundations for future growth.
From starting out in a single Ford Cortina, the business now has a fleet of over 500 vehicles and helps deliver in excess of 170,000 packages a week from centres throughout the UK.
Neil Hughes, Managing Director at Contact Transport, said: “Many will be familiar with the ‘last mile problem’ – the high costs associated with the last leg of the supply chain. This is where Contact Transport comes in. We assist the large online retailers and parcel networks to make that final mile as smooth, cost effective and stress free as possible.
“Logistics businesses are often faced with high costs for fleets, not to mention slower payment terms. After our previous financier restricted our funding, we needed a flexible funder who could adapt to our cyclical needs, which is when we turned to Bibby Financial Services. The team’s personal approach, flexibility and understanding of our business cannot be exaggerated.”
Since 2008 the business has seen rapid growth and has built a strong relationships it’s largest clients.
Siouxsie Millard at Bibby Financial Services, explains: “We came on board at a critical time for Contact Transport. In the summer of 2015 the business was putting in place plans for the Christmas peak volumes and to strengthen its relationship with its clients. We took the time to work with Neil and his team to understand the business and its relationship with its main customer, ensuring that the right funding was put in place.
“With accelerating growth in online shopping and rising demand for localised haulage, we could see that Contact Transport had a bright future. We put in higher funding limits and immediately injected an additional quarter million in cashflow to help the business, particularly during the last Christmas period when online sales were rocketing.”