Yodel predicts "strongly profitable" 2021 as volumes continue to surge

Yodel is on track to announce a profit for the first time since its formation over a decade ago, following a surge in volumes during the pandemic.

The carrier said projected full-year revenue for the year ending June 2021 was now over £535m and it expected to be “strongly profitable” at the pre-tax level.

In a trading update for the second quarter of its financial year the packets and parcels courier said there had been a 34% increase in volumes between October and December 2020 and total volumes in the six months to December 2020 had grown by 26%.

Mike Hancox, Yodel chief executive, said: “We have made a very strong start to the FY21 financial year, which continues the significant progress made over the past couple of years.

“During what has been an extremely challenging period for many people, we’re proud that we’ve been able to play a vital role in keeping the country moving.

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“Thanks to the tireless work of our colleagues up and down the country, together with the adaptability of our network, our performance has again improved beyond expectations and we fully expect to deliver a strong PBT result in FY21.”

Hancox added that Yodel had launched a new driver app to improve efficiency and lead to an improved final mile experience for customers.

It now intends to repay the full amount received from the government through the coronavirus job retention scheme.

The update came as the company’s annual results for the year ending 30 June 2020 showed turnover increased by 2% to £430m, although it also reported a pre-tax loss of £32.3m.

The company said its financial performance during the period was “significantly ahead of expectations” and that Covid-19 had created a step change in online shopping volumes.