Widdowson Group has picked up £3 million worth of new contracts after refinancing its business and overhauling its cost model.
The logistics company’s sales had fallen to £21m in 2009-10 from £24m the year before. It responded by refinancing, restructuring its commercial team and overhauling its cost model by the end of 2009 so that growth has already started.
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Commercial director John Hawksworth, above, said: “In the past uncompetitive pricing has cost us dear, by making significant cost savings, however, we’ve become ten per cent more competitive.
The company saved £2m from overhead costs, by reducing fixed costs associated with the fleet, training staff for efficiency and cutting salaries from director level down.
It has also renewed some £5m of existing contracts, having won back old clients as well as new business.
“We have found that more and more of our customers are relying on us to look after their entire logistics operation. This is enabling us to thrive in what is still a difficult economic climate and we are on course to grow the business to achieve our goal of a £30m turnover by 2013,” said Hawksworth.
