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Logistics can be a low margin sector. Even before a sniff of Covid & Brexit, the combined might of the top 100 logistics companies were reporting only 2.22% pre-tax profit, rising to 2.74% if you looked at the top 10. I wonder if, in Dragon’s Den, Touker Suleyman would consider it worth getting out of bed. Depending on what part of the industry you’re in, your cost and service considerations will be different: dedicated facilities with open book and a set margin, perhaps with gain-share agreements; shared facilities with a number of specific clients and the risk that if one contract is lost, some element of marginal costing puts profit at risk; network facilities which depend on getting the volume throughput to cover the costs of the capital investment.

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