Yodel has missed its self-set target of delivering a first ever profit in its most recently completed financial year, according to newly published accounts.
The company made its fifth loss in a row, recording a pre-tax loss for the year ended 30 June 2014 of £73m – equivalent to losing £1.4m a week.
The result was an improvement on the £98m pre-tax loss made in 2013 and turnover at the parcel delivery firm also increased from £379m a year earlier to £385m.
If the contribution from Yodel’s joint venture with PayPoint, Collect Plus, is included, then turnover was £403m (2013: £389m).
Off the back of its previous set of results, Yodel told MT last August that “significant progress" had been made and said it would likely be in the black for the first time since the company was formed in 2010.
Although the target has been missed, the company’s accounts state that it does expect to achieve an EBITDA profit in its 2015 financial year (Yodel cut its EBITDA loss from £75.4m in 2013 to £42.5m in 2014. This included a profit contribution from Collect Plus).
In response to the latest results, executive chairman Dick Stead, said: “Yodel’s management and its shareholders remain absolutely focussed on developing a parcel business with a profitable long-term future, by providing great customer experience at a great price.”
He added: “The UK parcel market remains a highly competitive place; however, following the demise of City Link, we expect to see capacity issues in the wider market. In particular around specific peak demand days resulting in increasing prices for guaranteed next day parcels.”
The performance is a significant improvement on the company’s financial low point in 2011 when it made a pre-tax loss of £150m off a record turnover of £724m.
