Haulage firm ARR Craib enjoyed a profits boost on the back of a buoyant north-east economy but warned that falling oil prices were expected to have a “knock on effect” in the coming year.
ARR Craib Transport said the north-east was its best performing region in the year to end of March 2014, although other regions returned to profit for the firm as the UK economy rebounded.
Turnover rose 7.6% to £46.1million on the prior year, while pre-tax profits rose from £1.412million to £1.629million.
ARR Craib said it employs 400 staff across its operations in Aberdeen, Cumbernauld and Eaglescliffe in the north of England.
During the period, the company invested £4million in new trucks and trailers, as well as in IT developments. The company added that it also acquired a site adjacent to its headquarters in Dyce in September which will give it an “even more substantial” presence in the Granite city, it said.
Eddie Anderson, chief executive, said: “Aberdeen remains the most buoyant region in which we operate. However, all parts of our business have returned profit showing that the economy across the UK is definitely firmly in recovery.
“The 2013/14 accounts reflect a prudent approach to develop steady sustainable growth and we continue to adopt a stringent policy on credit exposure and bad debt.
“The coming year will undoubtedly bring us challenges as the oil price has dipped by around 40% in the last five months to below $70 a barrel. There will be a knock on effect on all businesses which work closely with the oil and gas sector.”
“As with many companies headquartered, or with bases in Aberdeen, the shortage of suitably skilled labour and the relatively high cost of living in the city and surrounding area, remains a concern for us and it continues to restrict business growth. We will continue to address this issue to remain one of the top performing transport companys in the UK.”
ARR Craib services include rail freight and rail terminal management, warehousing, material handling, facilities management and manpower provision.