OPX Logistics, a Swindon-based logistics firm formed just over seven years ago, has called in administrators. The company, located at Ignition Park in Swindon, last filed reports with Companies House at the start of the year. It has cited post pandemic economic challenges and rising inflation over the last year as a reason for this decision.

Founded by entrepreneur Lee Hallett in 2014 after personal challenges, OPX Group includes OPX Recruitment, OPX Logistics, and OPX Distribution. The group is estimated to have a combined turnover of around £25 million.

OPX Logistics provides commercial haulage services to a range of retailers. The company’s report highlighted wider economic factors and increased cost pressures impacting the industry. In early 2022, as part of a strategy to build additional revenue streams, OPX invested in a new group venture, O’PX Distribution Ltd – which offers storage and fulfilment services. This venture is now generating revenues, with directors optimistic about its growth potential.

The company has a strong client base of national and international supermarkets, retailers, and third-party order fulfilment providers. The principal risk for OPX Logistics was a price rise, particularly related to fuel costs. The company managed this risk through forward planning and regular review of preferred suppliers. Despite these hurdles, directors reported record turnover for OPX Logistics in 2023, with an expanded client portfolio and new business in resilient sectors.

However, administrators were called in, leading to the cessation of the haulage operations. Andrew Beckingham and Sean Ward of Leonard Curtis were appointed as joint administrators last week. The team confirmed the logistics side of the business has been closed down.

They are assessing the financial position of OPX Logistics and its associates, OPX Recruitment Limited and OPX Distribution Limited. Reports for the same will be shared with the companies’ creditors in due course. They are also exploring options to sustain the group’s storage facilities and prevent employee layoffs.

OPX Logistics’ most recent accounts, covering the five months from 1 August 2022 to 31 December 2022, revealed a turnover of £6.5 million, down from £15.5 million in the year ending 31 July 2022. The company reported that 2022 was a challenging year due to the aftermath of the COVID-19 pandemic and a period of strong growth.