H Parkinson Haulage, a Preston-based, family-run haulage firm, has ceased operations after appointing administrators on August 5.
Established in 1953, the company employed around 130 staff and operated a fleet of 140 units and 380 trailers, covering extensive logistics solutions across the UK.
Decision to Appoint Administrator
The decision to appoint David Ackland of FRP Advisory as the administrator came on August 5. Despite a reported increase in turnover from £15.065 million to £16.295 million for the year ending June 30, 2023, the firm faced a pre-tax loss of £340,718, down from £535,973 the previous year.
The directors acknowledged a material uncertainty in the company’s future, arising from a third-party claim for dilapidation remedial costs related to a vacated commercial property.
Although the directors did not agree with the claim, they aimed to reach a commercial resolution.
History and Growth
Founded in 1953 as Harry Parkinson, the company had significantly expanded its operations over the years. It offered integrated logistics solutions, warehousing, storage spaces, and a two-lane DVSA authorised testing facility.
Based in Preston, it operated additional facilities in Milton Keynes to service the Midlands and the South.
The company had faced stiff competition in the haulage industry, exacerbated by supply chain disruptions, driver shortages, and inflation.
Financial Challenges
The directors’ report highlighted the intense competition in the haulage industry, further intensified by supply chain disruptions and driver shortages.
They noted that inflation had impacted all costs within the business, straining profit margins.
Despite these challenges, the company managed to sustain contractual and general work by increasing rates to mitigate rising costs. Even so, the ongoing supply chain disruption continued to create a supply and demand effect, further driving up costs.
Operational Impact
H Parkinson Haulage’s diverse fleet and extensive logistical network had been central to its operations. However, the external and industry-specific challenges significantly impacted their sustainability.
The company’s efforts to navigate these challenges included attempting to pass on extra costs to customers. Yet, this was not sufficient to offset the financial difficulties.
The directors’ assertion of a reasonable expectation for continued operation was overshadowed by the material uncertainties and financial pressures faced.
Community and Employee Impact
Employing around 130 staff, the closure of H Parkinson Haulage marks a significant loss to the local community. Staff redundancy and the broader economic impact on Preston are inevitable consequences.
The family-run nature of the business underscores the personal and communal ties intertwined with its operations.
The decision to close, while driven by financial necessity, reflects the broader challenges affecting the logistics and haulage sector.
Future Outlook
The closure of a long-established company like H Parkinson Haulage serves as a stark reminder of the volatility in the logistics industry.
Supply chain disruptions, driver shortages, and inflation are pervasive issues impacting numerous businesses within the sector.
Moving forward, the industry will need to address these systemic challenges to ensure the sustainability and growth of haulage firms.
The closure of H Parkinson Haulage underscores the relentless challenges facing the haulage industry. Despite increased turnover, the company could not overcome financial setbacks, supply chain disruptions, and external pressures.
The logistics sector must confront these pervasive issues to safeguard the future of similar businesses.