36% Growth over 12 Months
- Number of UK transport companies grew by 36 per cent between June 2014 and June 2015
- Failures are flat: 99 companies failed in the first six months of 2014, compared to 98 this year
New analysis from Creditsafe, the world’s most used provider of company credit reports reveals that the UK transport industry has had a bumper 12 months in terms of growth. Lower fuel prices and the UK’s reliance on home deliveries have helped the sector grow by more than a third in just 12 months.
Creditsafe’s figures show that the number of active UK transport companies grew by 36 per cent from 19,390 to 26,405 between 2014 and 2015. The health of the UK transport sector is further endorsed by Creditsafe data that highlights company failures have remained below one per cent of the total number of businesses for both 2014 and in the year to June 2015.
A further indicator of the changing profile of the creditworthiness of transport firms is the fact that the industry average risk rating this year is 55, meaning they are rated as having a medium-low risk. Just two per cent are in Creditsafe’s highest risk band this year, while more than a fifth (23%) are found in the lowest risk band.
Creditsafe’s analysis shows that despite the growth in the number of companies as well as their general healthy credit rating, there is still a small proportion of bad debt in the industry. Two per cent of businesses in the transport industry have County Court Judgments (CCJs) currently held against them. Three per cent have either outstanding or satisfied CCJs held against them with an average value of some £6,552 – totalling £2.27 million across the industry.
The most searched for director in the transport industry over the last year was Rachael McCall formerly of Deben Transport, one of East Anglia’s best known haulage companies, which collapsed in April 2015 resulting in more than 200 job losses.
Rachel Mainwaring Operations Director of Creditsafe said: “It’s encouraging to see such positive growth and business survival in the UK transport sector. Firms are finding the environment more comfortable as fuel prices remain low and the prevalence of online shopping drives more profit and business.
“Though transport companies have a low number of CCJs against them, they still exist, and more than 500 are in our highest risk banding, so it’s still important to check out potential suppliers and partners with a detailed credit report.”
Notes to Editors
* Creditsafe analysis of UK construction sector in August 2015
Creditsafe’s rating bands are classified as follows:
- 1-20 High Risk
- 21-29 Medium-High Risk
- 30-50 Medium Risk
- 51-70 Medium-Low Risk
- 71-100-Low Risk