Retained profits in the transport and logistics sector fell by 96 per cent compared to the same period a year ago, according to figures from Creditsafe.
In addition, the volume of bad debt owed to the sector reached over £2.8m, up 74.1 per cent compared to last quarter.
However, the Creditsafe Watchdog Report, which tracks quarterly economic developments, found that the rate of company failures in the sector slowed over the last three months, while the number of active companies reached its highest volume for over a year, up 34.3 per cent year-on-year to 128,583.
Retained profits for the sector dropped to £162m, while the volume of bad debt owed by the transport and logistics sector increased 70.8 per cent since last quarter.
In addition, the number of companies owing money to suppliers was up by 78.9 per cent. The number of County Court Judgments increased by 37.1 per cent since the last quarter.
Creditsafe’s chief operating officer Rachel Mainwaring said: “The transport and logistics sector has seen a lot of uncertainty over recent months and clearly this has had an impact on retained profits. While there are still some worrying signs in terms of levels of bad debt, it looks like some of the instability seen over recent quarters is reducing.”
