A strong performance in contract logistics boosted profits at Ceva, which showed a 7.5 per cent increase in adjusted EBITDA to £43 million in the first quarter.
Xavier Urbain, who took over as the company’s chief executive in January, said initiatives to increase profitability had paid dividends. Adjusted EBITDA in the Contract Logistics business rose 37.8 per cent year on year.
However, he pointed out that Ceva had not been immune to market conditions that impacted Freight Management.
“Despite that, I am pleased to report we had our strongest quarter in nearly two years for new business wins, showing particular strength in Freight Management as we exited the quarter. While revenue from these wins won’t be reflected until subsequent quarters, it shows positive momentum in the business.
Sales for the first quarter were down 8.9 per cent at $1.9bn. Measures to boost performance in Contract Logistics included exiting underperforming contracts which resulted in an “expected and planned reduction in revenue in this sector”.
Freight Management reported lower volumes, and margin pressure out of Asia adversely impacted performance.
[asset_ref id=”2239″] Xavier Urbain
Urbain said: “During my first few months at Ceva, I have visited many of our operational bases and have been impressed by both the professionalism and commitment of our people. It is clear that we have tremendous potential that can be focused on building the top line while we also continue to keep tight control on costs.”
