ADR Network – half year results
ADR Network’s half year results show an increase in turnover of 48% versus the same period last year. A number of key contracts wins in the second half of 2011 have filtered through and contributed to a record ‘half-year’ turnover performance. Current predictions suggest that the company’s turnover for this year will be around £82m, cementing the ADR Network brand as the largest supplier of agency LGV drivers in the UK.
ADR Network MD Andrew Waldron outlined that whilst the net profit will also show an improvement, versus last year, the growth % in turnover will not all it the bottom line in the same way. Increased costs associated with the agency worker regulations and extra costs of supply contingency solutions that were deployed during the Jubilee period and that are in place for the Olympics will reduce the full profit potential of the company growth.
Commenting further on the Jubilee period in particular 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 Olympics events are held but most retailers and operators are well aware of these and planning is at an advanced stage.”