Wolverhampton-based logistics group northstarr has reported record financial results, with annual revenue climbing 11.1% to £167.4 million and profits rising as the business expands its operations.
The parent company of pallet network Pallet-Track recorded its highest adjusted EBITDA of £10.8m for the year ended 31 December 2025, representing a 45.3% increase on the previous year.
The results come alongside record investment across the group, with £10m spent on infrastructure, technology and acquisitions to support future growth.
Pallet-Track also delivered a strong performance, handling 4.3 million pallets during the year, an increase of 5.7% compared with 2024.
The pallet network relocated to its new headquarters at Waterway Business Park in Wolverhampton, marking a major milestone in the group's expansion.
Northstarr's annual revenue rose from £150.7m in 2024 to £167.4m in 2025, while gross profit increased by £5.6m, or 30%, to £24.2m.
Gross profit margin improved from 12.3% to 14.4%, while operating profit climbed 19.4% to £6.6m, up £1.1m year-on-year.
Investment across the business increased almost sixfold, rising from £1.7m in 2024 to £10m last year.
Spending included the development of a new Central Hub, upgrades to IT systems and the acquisition of flexible warehousing specialist Sqrrl Solutions and cloud-based transport management provider Truckcom.
The group has continued expanding in 2026, adding fourth-party logistics (4PL) transport operator X2 (UK) Ltd to its portfolio.
The acquisitions form part of northstarr's wider strategy to diversify beyond pallet distribution and offer more flexible, technology-driven supply chain services.
Group chief executive Stuart Godman welcomed the results, describing them as evidence of the company's continued growth.
“These are an exceptionally strong set of results and ably demonstrate the growth trajectory across the northstarr group.”
He credited Pallet-Track's performance, including record pallet volumes and service delivery through its shareholder members, as a key contributor to the group's success.
Godman also highlighted the importance of the company's recent acquisitions, which are helping northstarr broaden its logistics capabilities and develop more data-driven services.
The investment in infrastructure, alongside the opening of its new Wolverhampton headquarters, reflects the group's confidence in its longer-term expansion plans.
However, the company acknowledged that rising industry costs and wider economic pressures continue to present challenges for the UK logistics sector.
Despite these conditions, Godman said the business remained optimistic about its prospects.
“Looking ahead, our strategy is clear and we remain confident about the group’s trading performance for the remainder of 2026 and beyond, even with industry costs rising and the general pressures of the wider UK economy.”
With pallet volumes increasing, profitability improving and acquisitions extending its reach, northstarr is positioning itself for further growth across the UK logistics and supply chain market.