Uk’s booming craft beer industry helped delivery firm APC boost profits overnight

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(qlmbusinessnews.com via telegraph.co.uk – – Fri, 25 Nov, 2017) London, Uk – –

Britain’s booming craft beer industry helped delivery firm APC Overnight post a 30pc growth in pre-tax profits to £3m last year.

Revenues at APC, which has 112 sites around the UK, crept up 0.8pc to £103m in the year to March 31 as the company moved away from so-called “heavy traffic” like white goods and carpets towards smaller parcels and packets, shipments of which have increased as online shopping has boomed.

Chief executive Jonathan Smith told The Daily Telegraph the company had seen particularly strong growth in the food and drink market.

Mr Smith said: “We’ve seen a real growth in niche beers from micro breweries. There’s more breweries in the UK than any time in the last 50 years, and lots of them have got online businesses now, which we serve.”

The number of UK breweries has soared 64pc to almost 2,000 since 2012, according to figures released by accountants UHY Hacker Young, as punters have ditched mass-produced lagers in favour of more unusual tipples.

Founded in 1994, APC is owned by 33 of its network members, local delivery companies for which it provides transportation and sorting services.

Larger logistics firms are gearing up to cope with the annual online shopping rush on Black Friday later this week, but Mr Smith said APC, which caters mostly to SMEs, does not anticipate such a large surge.

“There is a peak definitely, but lots of SMEs say do you know what, we’ve got a great service, a great product, we don’t take part in that,” Mr Smith said.

Delivery companies face an increasing struggle to cater to customers in large cities, and particularly in London, he added, as industrial space previously occupied by warehouses is converted into homes.

Mr Smith said: “We’re fairly well placed [to deal with it] but we can’t pretend conditions aren’t getting worse year-on-year.”

The industry has come under fire for its reliance on self-employed casual workers in recent years, but Mr Smith says APC and its members predominantly use employed drivers “where they can”.

By Jack Torrance