Employee-owned Liverpool freight forwarder Warrant Group sees revenues tumble 44% to £43.9m amid tough global trading but the employee-owned firm remains upbeat about its prospects. Tony McDonough reports

Liverpool freight forwarder Warrant Group is reporting a fall in both revenues and pre-tax profits amid a fall in container freight prices and volumes.

In the 12 months to January 31, 2024, Warrant Group saw revenues fall 44% to £43.9m and pre-tax profits down 29% to £2.66m. The company finished the trading period with net assets of £3.6m and has paid dividends to shareholders of almost £10m.

Writing in the annual report, director John Healy was upbeat despite the tougher trading conditions. He said: “Despite the company’s strong performance this year, the decrease in turnover is attributed to the decline in container freight prices and volumes.

“However, the company has effectively managed its underlying cost base and increased gross margin from 9.8% to 15.6% during the period.”

He added: “Consumer spending is down as everyday costs for fuel, food and borrowings continue to increase. However, through the diversity of the business profile, the company remains positive in relation to future business performance.”

On February 1, 2023, previous owners of the business, Ian Jones and Lynsey Morrison, sold 90% of their shares to their employees under an Employee Ownership Trust (EOT), allowing them to step back from the business over time.

Speaking at the time Ian Jones said: “As owners of Warrant Group, Lynsey and I felt that an EOT fitted perfectly with our company ethos to secure the long-term future of the business. 

“This will ensure that our core values, culture, and legacy will continue for many years to come.”

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Employing around 60 people, Warrant Group is based on Regent Road in LIverpool’s northern docklands. It has established a global network that facilitates both imports and exports for its customers.

During the trading period directors’ remuneration, including salaries and pension contributions, totalled £279,000. The highest paid director at the firm received more than £153,000.