DHL Express

DHL Express almost doubled its UK pre-tax profit last year thanks to a significant rise in inbound volumes and an increase in its share of the global express market.

Financial statements for DHL International (UK), which trades as DHL Express in the UK, reveal a 95.9% jump in pre-tax profit to £9.7m (2012: £4.9m) for the 12 months to 31 December 2013. This was off the back of an 11.7% increase in turnover from £544.8m to £608.9m in the same period. Its pre-tax profit margin also increased from 0.9% to 1.6% between 2012 and 2013.

A spokeswoman for the company was not able to comment on its activities in individual markets, but the directors’ strategic report published at Companies House stated that the express parcel carrier “continues to see increased volume growth and increased market share”.

It saw the cost of sales rise by 14.6% during the year, mainly driven by the cost of servicing a significant increase in inbound volumes and growing depreciation costs due to its investment in infrastructure. In 2013 the firm unveiled plans to invest £30m in boosting capacity at its hubs and depots over four years. The UK operation then secured a further £156m to invest in its network, beginning this year, which will include major redevelopments at its East Midlands and London Heathrow hubs by mid-2016.

The directors said they expected business to “remain competitive” in 2014, but were confident that the firm would perform strongly by focusing on increasing its market share and margins. “Service performance will be enhanced through continued investment,” the report added.

The company sold its same-day distribution division to Rico Logistics in October 2013. It did not comment on the sale, but Rico Logistics’ financial statements for the year ended 31 March 2014 revealed that it paid £756,000 to acquire the business.

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