ADR Network's half year results show an increase in turnover of 48% versus the same period last year. A number of key contract wins in the second half of 2011 have filtered through and contributed to a record 'half-year' performance. Current predictions suggest that the company's turnover for this year will be around £82m, cementing ADR Network's position as the largest supplier of agency LGV drivers in the UK.
ADR Network MD Andrew Waldron said that whilst net profit will show an improvement on the previous year, the percentage increase in turnover will not necessarily filter through to the bottom line.
Increased costs as a result of the Agency Worker Regulations and extra costs associated with contingency plans during the Jubilee period and schedules for the Olympics will reduce the full profit potential of the company.
Commenting on the Jubilee period Waldron said:
"Despite the rain soaked conditions of part of the Jubilee week operational demands were particularly high arguably due to the relatively good weather the week before. The agency driver market often attracts drivers because of the flexibility of the role of an agency driver. As such the driver pool was squeezed through availability issues affected by the relatively good weather the week before which saw people rushing to book time off, in case they lost the opportunity to enjoy a decent few days of sun."
It is believed that some retailers faced volatile swings in demand during the same period resulting in a near perfect storm of restricted driver supply and peaks and troughs in demand levels.
The inevitable question is does Waldron see the Olympics as posing similar problems?
"If episodes of good weather continue to be few and far between there could be some problems for the industry however, I am hopeful that demand levels will be in line with projections. Operationally I am sure there will be extra delivery pressures in areas where Olympic events are held but most retailers and operators are well aware of these and planning is at an advanced stage."
ADR Network is the largest independent LGV driver resourcing agency in the UK.Read more...