https://motortransport.co.uk/operator-news/wincanton-delivers-pre-tax-loss-of-almost-45m-ahead-of-sale-to-gxo/19173.article
As title says wincanton made a huge £45 million loss before they sell up to gxo.
Don’t know if this is a case of fudging the figures before the sale.
But if a big company like wincanton can’t run at a profit and all the various companies going under recently.
How on earth does any transport company manage to survive then.
All depend.Profit at statement doesn’t mean any real profit money.Loose doesn’t mean who company work bad or no money.
start up company b and heap all the costs on company a… sell company a. Just the reverse of what big companys do when they buy a smaller one.
another way is have an asset thats not included in the sale. and heap all the profets into the asset
Selling a loss making business means the balance sheet was in the red before the sale.Nothing to do with offloading just the cost side of the balance sheet.The costs have already been accounted for to create the loss situation.
Fuel, purchase and depreciation and wage costs combined are clearly unsustainable.Trying to keep trucks for longer to offset purchase costs will just increase the maintenance and depreciation costs.
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Profits are heavily taxed in the UK, ergo most sensible companies will show a loss. Doesn’t mean they didn’t make money, just that they employ good accountants.
What? The UK corporate tax rate is similar to the USA and most of Europe.
Just because a company is big doesn’t make they’ll always be profitable. If they make a loss on every or most of their runs even for a short time; If work drops they still have 100s of lorries they need to make payments on, office/warehouses to pay rent for etc.
My theory - people have less money to spend on non-essentials so business is slow.
Only guaranteed work is gov’t contracts in road construction / HS2 scheme, maybe?