A private equity-backed logistics company has broken the £20 million turnover barrier for the first time.

Carousel Logistics, based in Eurolink business park, Sittingbourne, pushed pre-tax profits close to the £2 million mark last year with growth of 17%.

It comes after it bought Birmingham-based AYS Logistics last August, which was “a critical step in the continuing execution of the company’s rigorous growth strategy”.

Its latest accounts show turnover increased 27% to £21.4 million, which it hopes to boost again with more acquisitions expected by the end of the year.

The document also reveals it paid £331,750 to buy AYS and that it lost £79,000 after Redditch firm AMS Interiors went into administration, although this was offset by £44,000 it had set aside for bad debts.

Carousel, which is led by brothers Graham and Michael Martin, has grown by about 56% since private equity firm Livingbridge invested in the company in 2013.

The firm, which employs about 90 people, expanded into an additional 10,000sq ft site at the Eurolink in 2015 and now runs a 24/7 facility in Birmingham.

“The continued organic growth of the company continued to enjoy extremely low customer attrition through providing a first-class customer experience...” - Graham Martin, Carousel Logistics

Bosses said the latter “enhances the through-the-night delivery service which is part of the growing offering to the aftermarket sector”, carrying accessories, spare parts and second-hand equipment for the car industry.

In his company report, Graham Martin said directors have “discussed in detail” the Brexit vote and “are assessing the opportunity and challenges that leaving the European and in particular the customs union might present to the company and its clients”.

He said: “The business continued to sharpen its value proposition resulting in a new website and additional marketing collateral including the publications of a white paper on the importance of logistics within the aftermarket sector.

“This directly contributed to new business wins in both medical devices and the technology sectors, further enhancing Carousel’s sector penetration.

“The continued organic growth of the company continued to enjoy extremely low customer attrition through providing a first-class customer experience.”