DSV Road saw its profit increase by more than a fifth last year, driven by a 7.3% increase in turnover.

In its latest financial results, the freight forwarder, haulier and supplier of supply chain services reported turnover of £193.9m in the year ending 31 December 2017 in the UK, up from £180.7m the previous year.

Pre-tax profit increased by 21.1% to £9.8m (2016: £8.1m).

It put the rise in turnover down to an increased focus on new business and retention of existing customers.

The company, which offers full and part loads, as well as groupage services, said it was “pleased” with the results and the directors “believe the culture of the company provides a strong and flexible platform from which to compete in a very competitive industry”.

However, it pointed out that the reduction in gross profit margin, from 18% in 2016 to 17% during the trading period was “indicative of the increased pressure on the cost of key goods and services and is the subject of management focus”.

It came as DSV Road’s parent company gave up its pursuit of rival CEVA Logistics.

This month, the Unite union warned that 200 driver and warehouse jobs were under threat after Hovis pulled out of its distribution deals with DSV and DHL Supply Chain.