Reflex Express shaves 60% off Q1 operating loss
13/05/2009
Reflex Express says it is on track with its recovery plan as it reports a 60% reduction in its operating loss for Q1 2009 compared with the same period last year. The parcel carrier's operating loss stood at £6.1m on an £85m turnover, compared with a £15.4m loss on a £95.2m turnover in Q1 2008.
"We are in line with plans and, one year down the line, we are making fantastic progress," marketing director Stuart Godman tells MT. "We have gone back to basics and focused on very high service levels which is bringing us back with more stability."
As MT reported last year, Reflex Express's new management team decided to implement a three-to-five year turnaround plan to return the firm to a profitable position following its difficult merger with Target Express in 2007 (MT 18 Sept 2008).
Although the Q1 operating loss was higher than the £4m loss reported in Q4 2008, Godman says this was expected, as "after the peak Christmas period, revenue is always lower between January and March".
In February, Reflex Express revealed a £31m network revamp (MT 26 February), which involves the firm switching from hard-sided trailers and investing in 280 curtain-sided double-deckers and 12,000 pallet cages. Speaking exclusively to MT, Godman reveals how the revamp is panning out:
By September, the group will have 80 double-deck curtain-sided trailers delivered. By January 2010 the remaining 200 new trailers will be integrated. The break is to ensure the busy festive season is not disrupted.
The new trailers will allow the business to carry an extra 21% volume. "There's better speed for unloading, it will be less labour-intense and we will be able to do the same work with 200 vehicles compared with what would normally require 300. This improves our carbon footprint."
By January 2010, all calls will be de-centralised so each depot will deal with enquiries individually. A pay freeze has been implemented across the board for the remainder of the year. There are no plans for large-scale redundancies.