Yodel pre-tax loss swells to £82m

Yodel made a pre-tax loss of £82.5m in its most recent financial year, which is the parcel operator’s biggest loss since 2013.

The Barclay brothers-owned business has never managed to turn a profit, but for the year ended 30 June 2017 Yodel’s pre-tax loss leapt 64% compared with its loss of £50.4m in 2016.

Its newly published accounts also reveal a drop in turnover of 3% year-on-year to £409.8m (2016: £422.7m).

Former CEO Mike Cooper, who left the business in January, told MT last year that he expected Yodel to turn its first profit in the next 12-18 months.

However, the strategic report to the accounts states that the current reporting period will also prove a challenge for the business.

It said: “The directors expect that the Yodel financial result for the year ending June 2018 will again be challenging.

"However, the Yodel business is now focused on delivering a number of key financial initiatives that are expected to set the business on a profitable trajectory.”

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Last year, Cooper said that he had implemented a four-strand plan to turning the business around which focused on better use of data and offering its customers a bespoke delivery service.

The results' strategic report added that click and collect shopping also formed a key part of its growth plans. This will take place through the Collect+ brand, which Yodel co-owns, and its fully-owned subsidiary Drop and Collect.

Yodel acquired the remaining 50% of Drop and Collect during the reported year.

A Yodel spokesman today told MT that it was continuing to modernise but that while its service was improving, it was still victim to downward cost pressure in the market.

The spokesman added: “Despite this, our commitment to using our unique data and customer insight to continually improve our service to retailers and their customers remains unwavering.

“Furthermore, Yodel’s recent acquisition of Drop & Collect illustrates our ambition to invest in driving growth and build a sustainable future for the business.

"Our owners recognise the positive journey the business is on and remain committed to investing in our people and operational infrastructure for the long-term.”